BHA 4053 Management in Health Care Administration

Question 1

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?

The date that the budget must be presented to the board.

The amount of time needed between budget activities.

The amount of time needed for each activity.

The outcome of each activity.

Question 2

_________ 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.

Demographic changes

Physician inputs

Bonds

Wishful thinking

Question 3

Labor costs typically make up between _________ of all expenses in a typical healthcare organization.

40-55%

50-70%

20-35%

60-70%

Question 4

Which of the following is one of the cons of bottom-up budgeting?

Administration is perceived as autocratic, not participative.

There is less chance of the managers needing to redo their work to “balance the budget” as the assumptions change.

The budget volumes may be closer to reality.

Managers have no incentive to set aggressive targets.

Question 5

_________ is defined as revenues and expense levels imposed by the administration and directed down to the manager who is expected to achieve them.

Top-down budgeting

Bottom-up budgeting

Capital budgeting

Administrative budgeting

Question 6

_________ is defined as revenues and expense levels as determined by each department manager and aggregated to establish the organization-wide budget.

Top-down budgeting

Bottom-up budgeting

Bottom-down budgeting

Organization-wide budgeting

Question 7

Which of the following is NOT one of the elements of the budget calendars used at RHMC?

outcome

responsible parties

activities

date

Question 8

Which of the following is one of the cons of top-down budgeting?

Administration is perceived as autocratic, not participative.

There is less chance of the managers needing to redo their work to “balance the budget” as the assumptions change.

The budget volumes may be closer to reality.

Managers have no incentive to set aggressive targets.

Question 9

One of the key inpatient volume drivers is _________.

cost.

length-of-stay statistics.

time of the year.

wishful thinking.

Question 10

Which of the following is a pro of presenting a budget to the board of directors for approval 70 to 90 days before the next budget year begins?

There may not be enough time to prepare and deliver the results of the approved budget to the department managers.

The data and information used to project volumes is not current.

The data and information used to prepare the budget, particularly the volumes, are the most current available.

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?