Hospital Budgeting - Essay Example

Only on StudentShare

Extract of sample
Hospital Budgeting

Favorable variance implies that the actual result exceeded or just equals the budgeted result in the desired direction. For example, if supplies usage is less than the budgeted the variation is favorable because it results to material savings. On the other hand a variance is said to be unfavorable if the actual result is more than the budgeted result in the wrong direction (adverse). For example, if the total wage rate exceeds the budgeted wage rate the variance is termed unfavorable, since more cash outlay is involved than the planned cost (Drury, 2007). Variance can be used to analyze the performance of different firms in the same industry such as hospitals among themselves through a standard rate. Where, it can either be represented in percentage or discrete values. In health sector variance is used to measure the extent of efficiency in utilizing health facilities. It also reveals areas that need further investigation depending on the level of deviation from the expected and the relevant range that is acceptable in the health sector. Variations within the accepted range imply that projects or operations are running on as expected. It is the managers concern that the departmental salaries were higher than the expected in this scenario. The possible causes of salary variance includes: increase in wage rate this would have resulted in adverse salary variance. ...Show more

Summary

Topic: Hospital budgeting Date: Variance is the total deviation of the actual result from the budgeted result. It involves calculating the difference between the achieved result and the ones that had been predetermined in the budget…
Author : cyrusrutherford
Save Your Time for More Important Things
Let us write a custom essay on your topic
"Hospital Budgeting"
with a personal 20% discount.
Find out more

Related Essays

Transit Funding: coping with cuts
According to a survey by Rosenbloom (2010), services during non-peak periods have been reduced by around 60%, services during rush hour by 55% and reduction in the number of transit routes by over 42%. In fact, the survey goes on to demonstrate that such changes have been implemented in over 60% of the transit systems.
9 pages (2250 words) Research Paper
Happy Hospital Scenario
Three techniques that can be used to forecast sales are regression analysis, Delphi method, and time series (Mann, 1995). The most comprehensive and important budget that is prepared by the accounting department is the master budget. The master budget is a summary of a company’s plans that sets specific targets for sales, distribution, production, and the financing activities (Garrison & Noreen, 2002).
3 pages (750 words) Essay
Public Sector Budgeting
There are four major steps in budget making: preparation, legislative approval, executive implementation, and accounting and financial reporting. The first stage is the preparation or the drafting stage. The draft budget is compiled and submitted to the legislature for approval at this stage.
9 pages (2250 words) Assignment
Budgeting
As such, a budget is tied to business goals and objectives, current and expected financial capability, and management strategies. In a business environment where there are uncertainties, budgeting is a means of managing risks. Issues in budgeting arise from the influence and confluence of internal and external factors that create anticipated and unanticipated risks.
7 pages (1750 words) Essay
Budgeting in Health Care Organizations
A concise definition was provided by Gapenski (2008), who stated that the budget is the detailed plan, expressed in dollar terms that specify how resources will be used within a period of time. When a health organization's budget pertains to the plan that includes activities, expenses, costs, resources and revenues within a specific period of time, it is called the operational budget.
3 pages (750 words) Essay
Budgeting
Budgeting. The management of a company’s finances is an important element to any corporation as it hinges on the potential of success and failure of a business. The best way of ensuring that this management is done appropriately is through the process of budgeting (Obstfeld, 2008).
6 pages (1500 words) Assignment
Budgeting
Budgeting Introduction:Budgeting plays an important role in a business. It is very significant for the reason that it permits the firm to ensure of how much credit it may provides to consumer before it begins to have liquidity troubles. “Cash budget is an opinion of inflow and outflow of the business of an organization for a particular period of time” (Foley 2009).
3 pages (750 words) Essay
budgeting
It generally provides considerable assistance in identifying the dimensions of business functions that need more attention to be upgraded and delivers a rational idea regarding the unnecessary expenses incurred within a particular organization with the motive of preserving financial effectiveness.
10 pages (2500 words) Essay
The effects of raising the minimum wage
Each company sets its own minimum wage taken into considerations country’s laws and regulations. Almost all the countries in the world have similar kind of minimum wage laws and legislation.
21 pages (5250 words) Essay
Accounting Ethics
Accounting ethics is a very important ethical practice for preventing corporate collapses. Accounting ethics has significant importance for different stakeholders related with any organization. It is being noticed that different corporate collapses and recent accounting malpractices has increased the importance of accounting ethics.
15 pages (3750 words) Term Paper
Absorption Costing versus Variable Costing
The absorption costing technique is more favourable as the profits estimated under this system are more accurate. Variable costing is seen to inflate expenses and reduce the level of profits. Both the methods
6 pages (1500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT