Chapter 10

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  1. Mission Statement
    Guides the organization into the future by identifying the unique attributes of the organization why it exits and what it hopes to achieve
  2. Planning
    The process of identifying goals, objectives, tasks, activities, and resources necessary to carry out the strategic plan of the organization over the next time period, typically one year
  3. Short-term plans
    Plans that identify an organizations short-term goals and objectives in detail, primarily in regard to marketing, production, control, and financing the organization
  4. Controlling activities
    Activites that provide guidance and feedback to keep the organization within its budget once it has been approved and is being implemented
  5. Authoritarian approach
    Budgeting and decision making that are done by relatively few people concentrated in the highest level of the organizational struture.
  6. Zero-based budgeting
    An approach to budgeting that continually questions both the need for existing programs and their level of funding, as well as the need for new programs
  7. Incremental-Decremental Approach
    A method of budgeting that starts with an existing budget to plan future budgets.
  8. Flexible Budget
    A budget that accommodates a range or multiple levels of activities
  9. Static Budget
    A budget that uses a single or fixed level of activity
  10. Rolling Budget
    A multiyear budget that is updated more frequently than annually such as semiannually or quarterly
  11. Multiyear Budget
    A budget that is forecast multiple years out, rather than just for the upcoming year
  12. Performance Budget
    An extension of the program budget that also lays out performance objectives
  13. Strategic Planning
    Identifying an organization's mission, goals, and strategy to best position itself for the future
  14. Program Budget
    An extension of the line item budget that shows revenues and expenses by program or service
  15. Line-item Budget
    The least detailed budget, showing only revenues and expenses by category, such as labor or supplies
  16. Operating Budget
    Comprises the revenue budget and the expense budget

    The bottom line for this budget is net income
  17. Statistics Budget
    First budget to be prepared.

    Identifies the amount of serviecs that will be provided, typically categorized by payor type
  18. Expense Budget
    A forecast of the operating expenses that will be incurred during the current budget period
  19. Revenue Budget
    A subset of the operating budget that is forecast of the operating revenues that will be earned during the current budget period.
  20. Cash Budget
    It displays all of the organizations projected cash inflows and outflows.

    The bottom line for this budget is the amount of cash available at the end of the period
  21. Net Charges
    The amount that an organization bills its patients after accounting for discounts and allowances
  22. Gross charges
    The amount that an organization would bill its patients if they all paid full charges
  23. Relative Value Units (RVUs)
    A standardized weighting applied to services that reflects the amount of resource consumption to provide that service. A service assigned two RVUs consumes twice the resources as does a serivce assigened one RVU
  24. Variable Labor Budget
    A subset of the labor budget that forecasts nonsalary labor costs, such as part-time employees and overtime hours
  25. Fixed labor Budget
    A subset of the labor budget that forecasts the cost of salaried personnel
  26. Labor Budget
    A subset of the epense budget, this budget is composed of the fixed labor budget and the variable labor budget
  27. Variable supplies budget
    A subset of the supplies budget that includes items that vary with volume
  28. Fixed supplies budget
    A subset of the supplies budget that covers items that do not vary with volume
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Chapter 10
2013-11-07 17:18:38

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