Staffing Flashcards
Funds r/t For Profit
Excess funds are given to investors
Funds r/t Not For Profit
Excess funds are used to expand health services in the community
Revenue Center and Cost Center are considered actual revenue and expenses or expected revenue and expenses
Actual revenue and expenses
Revenue Center is
an account used to record income
Cost Center is
an account used to record expenses
Variance is
the difference between what was budgeted and the actual results (trends)
Types of Budgets
Operational
Capital
Special Purpose/Construction
What is a budget
a formal quantitative expression for acquiring and distributing funds
A tool to help allocation decisions and plan for expenditures in a 12 month period
Budget
Basic Concept of a Budget
Revenue (money brought in as payment for goods/svc)
Expense (cost of producing a product)
Budgets use actual revenue and expenses or expected revenue and expenses
Expected revenue and expenses
Budget planning
collaborative planning with all levels of mgmt
review of strategic plan
who sets the objectives of budget planning
Sr. managers
who devises budgets based on trends in pt. care
mid or unit managers
what are operational expenses budget
operation of facility for the year (salaries, meds, supplies)