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HCAD 375 Final Exam Questions and Answers
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HCAD 375 Final Exam Questions and Answers
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HCAD 375 Final Exam1. Planning delineates both _________________ & __________________ paths a business will follow
and what _____________________ it will utilize to achieve its goal. - Answer-short term, long term,
procedures
A budget states your goals in ________________ terms - Answer-monetary
Rather than budgeting dollars, a staffing and census budget typically budgets _______________ PPD. -
Answer-acuity
What are the 2 major components of an operating budget? - Answer-Revenue and expense budgets
Budgeting for new equipment is generally part of which type of budget? - Answer-Capital budget
How often should capital needs be forecasted? - Answer-Annually
What are some factors that should be considered when prioritizing capital needs? - Answer--need
-amount of working capital projected to be available to your facility
, Describe 3 types of common forecasts used in health care budgeting. - Answer-Short range- usually
annual which deals with next year and planning the budget
Intermediate Range- 5 years from today with strategic planning
Long Range- 10+ years with strategic planning
What type of assumptions and information are necessary to generate a revenue forecast? - Answer-
Data and trends such as utilization changes, patient mix changes, rate changes, and volume or capacity.
Having accurate data and using that data will give you better assumptions. You can only forecast as good
as your assumptions.
In health care what commonly contributes to capacity limitations? - Answer--space and equipment
availability
-staffing
What are the objectives/uses of a budget? - Answer--Is a written plan that quantifies the activities of
your organization into financial terms
-serves as the basis for evaluating financial performance according to policies and plans
-is a useful tool for cost control
-creates cost awareness throughout the organization
Describe the difference between Authoritarian versus Participatory budgeting approaches, including
advantages and disadvantages to each? - Answer-Participatory approach requires participation from a
number of individuals within the organization in the budgeting process, which an Authoritarian
approach requires great data and good communication throughout the year. Advantages of the
Participatory approach is that folks from the top are getting input from department heads while a
disadvantage is it can take while to gather that information and create a target budget. Advantages of
the Authoritarian approach is that the organization did have sufficient enough communication
throughout the year for the board to make an informed decision with the data they have to create a
budget in a timely manner while a disadvantage is that there is none of the back and forth approach like
Participatory.
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