Homework Assignment HS440 Unit 5
Autor: viki • April 12, 2011 • 895 Words (4 Pages) • 954 Views
Do you believe your organization uses a flexible or static budget? Why do you think so?
I haven't worked in a medical facility as of yet, I retire for the navy so I will give a definition of both. A "Static Budget" that has been approved and finalized, that single level of operations (volume) is never adjusted. Budgets are measured by how they differ from actual results. Thus, a variance is the difference between an actual result and a budgeted amount when the budgeted amount is a financial variable reported by the accounting system. The variance may or may not be a standard amount, and it may or may not be a benchmark amount.
If you reviewed a budget at your workplace, do you think the major increases and decreases could be explained? Referring to the Veteran Hospital then, I would say yes, the basic thing to understand is that static budgeted expense amounts never change when volume actually changes during the year. The results are stated by a percentage of patient's days of the Static Budget.
Do you believe variance analysis (or a better variance analysis) would be a good idea at your workplace? Let me begin with stating what a variance is according to our text. A variance is, basically, the difference between standard and actual prices and quantities. Variance analysis analyzes these differences. I think it would depend on a pre-variance analysis that I would do before committing any company resources into performing a Variance. Is the problem volume, quantity, or price? If that pre-variance leads me or other managers I was consulting with to believe there was a problem or situation I would sign on to a Variance analysis. It's the VA and Tax money should be thought of as treasure these days.
Have you ever been involved in helping to create any part of a capital expenditure budget? No. the Navy has congressional inquiries for