BHA 4053 Part IV
Question 1
Which of the following is NOT one of the elements of the budget calendars used at RHMC?
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outcome |
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responsible parties |
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activities |
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date |
Question 2
Which of the following is not one of the three things needed to determine when the very first budget steps have to be taken in any given year?
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The date that the budget must be presented to the board. |
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The amount of time needed between budget activities. |
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The amount of time needed for each activity. |
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The outcome of each activity. |
Question 3
The largest expense item in the fringe benefit category is the _________.
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health insurance expense. |
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tuition reimbursement. |
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worker’s compensation. |
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unemployment insurance. |
Question 4
The _________ determines the capital equipment to be acquired, buildings to be renovated, built, or leased, amounts to be spent, and the estimated useful life assigned to of these assets.
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operating budget |
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capital budget |
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renovation budget |
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yearly budget |
Question 5
_________ is a concept sometimes used in volume budgeting, and it is, often employed as the means to balance a budget that for one reason or another does not come out right the first time.
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Demographic changes |
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Physician inputs |
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Bonds |
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Wishful thinking |
Question 6
Which of the following is one of the cons of top-down budgeting?
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Administration is perceived as autocratic, not participative. |
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There is less chance of the managers needing to redo their work to “balance the budget” as the assumptions change. |
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The budget volumes may be closer to reality. |
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Managers have no incentive to set aggressive targets. |
Question 7
Good management suggests that the _________ is always the first payment priority.
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payment to trade vendors |
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payroll taxes to government |
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senior management payment |
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payroll |
Question 8
Which of the following is one of the pros of bottom-up budgeting?
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Administration is perceived as autocratic, not participative. |
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There is less chance of the managers needing to redo their work to “balance the budget” as the assumptions change. |
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The budget volumes may be closer to reality. |
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Managers have no incentive to set aggressive targets. |
Question 9
_________ is defined as revenues and expense levels as determined by each department manager and aggregated to establish the organization-wide budget.
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Top-down budgeting |
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Bottom-up budgeting |
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Bottom-down budgeting |
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Organization-wide budgeting |
Question 10
Which of the following is a pro of presenting a budget to the board of directors for approval 10 to 30 days before the next budget year begins?
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There may not be enough time to prepare and deliver the results of the approved budget to the department managers. |
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The data and information used to project volumes is not current. |
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The data and information used to prepare the budget, particularly the volumes, are the most current available. |
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There is more time to prepare and deliver the results of the approved budget to the department managers. |
Question 11
Discuss the most important steps in the operating budget process. Why are these more important than the other steps?
Question 12
Which is better the top-down budgeting process or the bottom-up methods? Why?
Question 13
(Chapters 6-7) Debate the issues relating to across-the-board labor cuts versus cuts predicated on labor standards. What are the pros and cons of each method? Which is preferable?
