Budgeting And Variance Analysis
Review the Week 9 Assignment document provided to you by the Instructor. Examine the budgeted and actual revenues and expenses for a hospital. Reflect on concepts of budgeting and variance. Refer to Chapter 10 and Chapter 11 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications in this week’s Learning Resources for additional guidance.
The Assignment:
Using the “Week 9 Assignment Budget and Variance Excel Template” address the following:
- Determine the total variance between the planned and actual budgets for Surgical Volume. Is the variance favorable or unfavorable?
- Determine the total variance between the planned and actual budgets for Patient Days. Is the variance favorable or unfavorable?
- Determine the service-related variance for Surgical Volume.
- Determine the service-related variance for Patient Days.
- Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual Surgical Revenues.
- Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actual Patient Expenses.
- Determine what variances are due to change in volume and what variances are due to change in rates.
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