JWI533 Strayer Leveraging Flexible Budgeting to Manage Revenue Cycles

Anonymous
timer Asked: Feb 7th, 2019
account_balance_wallet $30

Question Description

The financial well-being of Healthcare providers is highly dependent on building and managing operating budgets that clearly identify the relationship between fixed and variable costs, and which can accommodate variances in patient load and billing

Unformatted Attachment Preview

Tutor Answer

RyanTopTutor
School: Duke University

Attached.

Running Head: Leveraging Flexible Budgeting to Manage Revenue Cycles

Leveraging Flexible Budgeting to Manage Revenue Cycles
Name
Instructor
Institutional Affiliation
Date

Leveraging Flexible Budgeting to Manage Revenue Cycles

2

3

Leveraging Flexible Budgeting to Manage Revenue Cycles
QUESTION ONE
a. How did the organization perform on an annual basis?

The organization did not perform well as it posted an operating loss to the tune of $96,100.
b. When comparing the static budget versus actual results, which line items in the income
statement are Favorable (F) or Unfavorable (U)?
The following shows the items that are favorable abbreviated as F and items that are unfavorable
abbreviated as U.
Number of Patients
Revenues
Variable Expenses
Nursing Labor Expenses
Admin Labor Expenses
Employee Benefits - Nursing
Employee Benefits - Admin
Medical Supplies
Purchased Services
Medical Fees
Utilities
Bad Debt Expense
Tota Variable Expenses
Contribution Margin

$

$

Budget
Per Unit
16,600
2,650,000 $
160

Variance
2,800
$
(373,000)

U

750,000
180,000
26,400
13,500
560,000
320,100
38,000
14,200
28,000

$
$
$
$
$
$
$
$
$

180,000
10,000
(4,000)
(2,500)
(50,000)
(40,100)
10,000
2,600
(2,000)

F
F
U
U
U
U
F
F
U

2,034,200

1,930,200

$

104,000

615,800

346,800

$

269,000

930,000
190,000
22,400
11,000
510,000
280,000
48,000
16,800
26,000

$
$
$
$
$
$
$
$
$

56
11
1
1
31
17
3
1
2

$

$

Actual
13,800
2,277,000

F
F

4

Leveraging Flexible Budgeting to Manage Revenue Cycles
c. What are the per-unit costs and contribution margins?

The per-unit costs are computed by the following formula: Per-unit cost=cost element/numb...

flag Report DMCA
Review

Anonymous
Top quality work from this guy! I'll be back!

Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors