Health Care Finance Assignment Please read through carefully and make you you understand fully before sending proposal. I need an A. Make sure you have access to the book. Book: Health Care Finance: B

Health Care Finance Assignment Please read through carefully and make you you understand fully before sending proposal. I need an A. Make sure you have access to the book. Book: Health Care Finance: B
HSA 304 Name: __________________ Professor Robert DeVito Final Exam What are the three types of flexible budgeting variance? CH 17 (5 Points) Cash, Accrual & Trend Productive, Non-Productive & Actual Volume, Quantity & Price None of the above. Variance Analysis can be performed as a two or a three variance Analysis. CH 17 (4) A. True B. False Which of the following is NOT a method of obtaining funds? CH 22 (4) Borrowing from Investors Borrowing from Family Borrowing from a Lending Institution Selling an additional interest in the organization Is the following statement true or false? CH 23 (4) “The cost of an operating lease is considered a capital expense” True B. False Which of the following is NOT an element of a traditional (4 points) business plan? CH 24 Financial plan Marketing plan Organization plan Distribution plan What type of Bonds are long term obligations that are (4) typically used to finance capital projects? CH 21 Debentures Municipal Mortgage Common Stock Which of the following is NOT a common use of Estimates? (4) CH 18 Timeliness Considerations Cost/Benefit Considerations Benchmarking Considerations Lack of Data Which of the following is a type of Benchmarking? CH 18 (4) A financial variable not reported in an accounting system. A non-financial variable. A financial variable reported in an accounting system All of the Above Choose the best description of a Financial Lease. CH 23 (4 Points) A document in which all transactions for the period reside. An increase in the volume of money. A formal agreement that is actually a contract. A contraction in the volume of available money. What does SWOT stand for? CH 19 (4) Strengths-Weaknesses-Opportunities-Threats Systems-Workshops-Opportunities-Timeliness Static-Weaknesses-Organizing-Target None of the Above The mission of the Securities and Exchange Commission (4) (SEC) is to ensure that the correct methods of accounting are utilized in a not-for-profit environment and that government auditors have access to books and records. CH 21 True B. False Benchmarking is the continuous process of measuring products (4) Services, and activities against the best levels of performance. CH 18 True B. False Financing costs typically involve the following: CH 22 (4) Bartering and Trading Interest Expense and Loan Costs Inflation and Deflation Gross Domestic Product and Common Stock Name three (3) basic pieces of information related to the Organization Segment of a Business Plan. CH 24 (6 Points) What are the five Initial decisions for the Business Plan? CH 24 (10) List two items that are FDIC Insured and two Items that are NOT FDIC Insured. CH 21 (8) If the formula for Target Operating Income is: CH 17 (8) N= Fixed Costs + Target Operating Income Contribution Margin Per Unit And, if target operating income is $ 3200 Unit price for sales is $200 Variable cost per unit is $ 120 Total fixed cost is $ 4000 What is the contribution margin per unit? What are the four sources of Capital? CH 22 (8) 1. 2. 3. 4. What is a Financial Lease? CH 23 (4) The Breakeven point is the point at which the Balance Sheet and the Statement of Revenue and Expenses total zero. CH 17 (3) True B. False
Health Care Finance Assignment Please read through carefully and make you you understand fully before sending proposal. I need an A. Make sure you have access to the book. Book: Health Care Finance: B
Final Exam What are the three types of flexible budgeting variance? CH 17 (5 Points) Cash, Accrual & Trend Productive, Non-Productive & Actual Volume, Quantity & Price None of the above. Variance Analysis can be performed as a two or a three variance Analysis. CH 17 (4) A. True B. False Which of the following is NOT a method of obtaining funds? CH 22 (4) Borrowing from Investors Borrowing from Family Borrowing from a Lending Institution Selling an additional interest in the organization Is the following statement true or false? CH 23 (4) “The cost of an operating lease is considered a capital expense” True B. False Which of the following is NOT an element of a traditional (4 points) business plan? CH 24 Financial plan Marketing plan Organization plan Distribution plan What type of Bonds are long term obligations that are (4) typically used to finance capital projects? CH 21 Debentures Municipal Mortgage Common Stock Which of the following is NOT a common use of Estimates? (4) CH 18 Timeliness Considerations Cost/Benefit Considerations Benchmarking Considerations Lack of Data Which of the following is a type of Benchmarking? CH 18 (4) A financial variable not reported in an accounting system. A non-financial variable. A financial variable reported in an accounting system All of the Above Choose the best description of a Financial Lease. CH 23 (4 Points) A document in which all transactions for the period reside. An increase in the volume of money. A formal agreement that is actually a contract. A contraction in the volume of available money. What does SWOT stand for? CH 19 (4) Strengths-Weaknesses-Opportunities-Threats Systems-Workshops-Opportunities-Timeliness Static-Weaknesses-Organizing-Target None of the Above The mission of the Securities and Exchange Commission (4) (SEC) is to ensure that the correct methods of accounting are utilized in a not-for-profit environment and that government auditors have access to books and records. CH 21 True B. False Benchmarking is the continuous process of measuring products (4) Services, and activities against the best levels of performance. CH 18 True B. False Financing costs typically involve the following: CH 22 (4) Bartering and Trading Interest Expense and Loan Costs Inflation and Deflation Gross Domestic Product and Common Stock Name three (3) basic pieces of information related to the Organization Segment of a Business Plan. CH 24 (6 Points) What are the five Initial decisions for the Business Plan? CH 24 (10) List two items that are FDIC Insured and two Items that are NOT FDIC Insured. CH 21 (8) If the formula for Target Operating Income is: CH 17 (8) N= Fixed Costs + Target Operating Income Contribution Margin Per Unit And, if target operating income is $ 3200 Unit price for sales is $200 Variable cost per unit is $ 120 Total fixed cost is $ 4000 What is the contribution margin per unit? What are the four sources of Capital? CH 22 (8) 1. 2. 3. 4. What is a Financial Lease? CH 23 (4) The Breakeven point is the point at which the Balance Sheet and the Statement of Revenue and Expenses total zero. CH 17 (3) True B. False
Health Care Finance Assignment Please read through carefully and make you you understand fully before sending proposal. I need an A. Make sure you have access to the book. Book: Health Care Finance: B
Chapter 17 Notes Overview Understand the three types of flexible budget variance Perform budget variance Compute a contribution margin Perform Sensitivity analysis Variance Analysis and Sensitivity Analysis Variance Analysis Overview A variance is, basically, the difference between standard and actual expenses and revenue. Variance analysis analyzes these differences. The following discussion assumes a flexible budget. Flexible budgeting provides a method to get more information about the composition of departmental expenses. Three Types of Flexible Budget Variance Volume Variance The volume variance is the portion of the overall variance caused by a difference between the expected workload and the actual workload and is calculated as the difference between the total budgeted cost based on a predetermined, expected workload level and the amount that would have been budgeted had the actual workload been know in advance. Quantity Variance The quantity or use variance is the portion of the overall variance that is caused by a difference between the budgeted and actual quantity of input needed per unit of output, and is calculated as the difference between the actual quantity of inputs used per unit of output multiplied by the actual output level and the budgeted unit price. Price Variance Also known as the spending variance. This variance is the portion of the overall variance caused by a difference between the actual and expected price of an input and is calculated as the difference between the actual and budgeted unit price or hourly rate, multiplied by the actual quantity of goods, or labor, consumed per unit of output and by the actual output level. Review Table 17 – 1 for Static Budget Variance Analysis Review Table 17 – 2 for Flexible Budget Variance Analysis Sensitivity Analysis Is a “what if” proposition. It answers questions about what may happen if major assumptions change or if certain predicted events do not occur. The “what if” feature allows the manager to plan for a variety of possibilities in different scenarios. It looks at different scenarios within the budgeting process. Forecasts should always be subjected to sensitivity analysis. Because forecasts always contain a degree of uncertainty, they should be subjected to what if scenarios. What will Radiology operating income be If the department’s revenue is ten percent higher than expected? Sensitivity Analysis Tools Two Sensitivity tools are Contribution Margin and Contribution Income Statement. The Contribution Income statement specifically identifies the contribution margin within the income statement format. The Contribution Margin is the difference between revenue and variable costs. The remaining difference is available for fixed costs and operating income. See example on Page 200. Assume: 100 procedures completed at $50 per procedure = $5,000 revenue Variable costs amount to $30 per procedure = $3,000 Contribution Margin equals $2,000 ($5,000-$3,000) Fixed costs = $1,200 Operating Income would then equal $800. Target Operating Income Using the Contribution Margin Method This allows the manager to determine how many procedures must be completed in order to yield a particular operating income. Formula is: N = Fixed Costs + Target Operating Income Contribution Margin per Procedure If the: Desired operating income is $1,600 Procedure Price for Revenue is $100 Variable cost per unit is $60 Total fixed cost is $2,000, then N = $2,000 + $1,600 = 90 Units $40 Therefore, it would take a target of 90 procedures to produce operating income of $1,600. This can be proven as follows: Revenue at $100 per unit x 90 units = $9,000 Variable Costs $60 per unit x 90 units = $5,400 Contribution Margin $3,600 Fixed Costs 2,000 Target Operating Income $1,600 Breakeven Point Using the Contribution Margin Method If we remember that the breakeven point is when operating revenues equal costs and operating income is zero. This can be easily arrived at by using sensitivity analysis as follows: Calculate Breakeven point by number of units Break-Even Number of Units = Fixed Costs/Contribution Margin per Unit Break-Even Number of Units = $2,000/$40 = 50 Units Contribution Income Statement will be as follows: Revenue at $100 per unit x 50 units = $5,000 Variable Costs $60 per unit x 50 units = $3,000 Contribution Margin $2,000 Fixed Costs 2,000 Operating Income at Breakeven $ -0-
Health Care Finance Assignment Please read through carefully and make you you understand fully before sending proposal. I need an A. Make sure you have access to the book. Book: Health Care Finance: B
Exercise Chapter 22 Briefly describe what Capital Structure means. Capital structure is the relationship between debts and equity or the combination of debts and equity used by the company in order to financial overall operation and growth. Debt in this case represents form of bond issues or loan while equity is the capital that come from common stock, preferred stock or retained earnings. For example bonds and shares can be transacted in the New York security exchange (NYSE). Debts instruments include loans, bonds and debenture. What are the four sources of Capital? The source of capital include funds that are borrowed from lending institution in form of loan, borrowing from investor inform of preferred shares, retaining the excess of revenue over expense which comprises the percentage that remain after distribution of dividend for company that has dividend payment policy. Last source of capital include selling an additional interest in the organization though issue of shares.
Health Care Finance Assignment Please read through carefully and make you you understand fully before sending proposal. I need an A. Make sure you have access to the book. Book: Health Care Finance: B
Exercise Chapter 23 What are the definitions of the following terms? Financial Lease Financing lease is a formal agreement or contract to purchase of equipment. Example of financial lease include contract to purchase a machine or office furniture. Depreciation Depreciation is the expensing of an asset involved in producing revenue throughout its useful life. Depreciation is the systematic allocation of fixed assets over its useful life. Examples of assets costs that can be written off over a number of years include manufacturing equipment, building, vehicles, and computer system and office furniture. Operating Lease Operating lease is a contract that allow for the use of an asset but does not convey ownership right of the assets. Operating lease is considered expenses of current operation. For example, a firm can use property, plant and equipment such as computer without owning the assets. Briefly describe what Purchasing Equipment means. Purchasing equipment mean taking title to or assuming ownership of the item. The purchase of the equipment can take place though paying in cash from cash reserve or the organization can finance all or part of the asset. For example a firm can purchase computer and computer machines and assume ownership. The liability of maintaining this equipment is sole responsibility of the company.