Chapter 4: Managing Financial Resources Flashcards
(11 cards)
What is the basic purpose of financial management?
To make money available when you need it, where you need it, and in the amount that you need.
What is the most common used budget in lab animal facilities, and why?
Incremental budgets because they are satisfactory for many animal facilities, and easy to develop.
What should you do when preparing your budget?
Review current programs to determine if they should be continued, modified, or deleted.
What is the big difference between zero based budget and incremental budget?
Zero based budget requires you to estimate in advance the costs for most of the individual items that will be in your budget. Incremental doesn’t need it.
What is the main concept to setting Per Diem Rates?
Have all anticipated expenses covered by activities that will generate income. (Total mouse expenses for the year / 365) / Average number of mice housed per day = per diem rate.
Why is per diem based on incremental budget instead of zero based?
Because you can look back at previous year’s per diem rates, and increase per diem if needed for general escalation of costs.
What is a key variable?
An internal or external business factor that can have a major impact on the operations. Good managers carefully monitor key variables.
What is supply inventory?
Continuous, supplies that are replaced frequently.
What is equipment inventory?
Performed once a year, includes long-lived items such as animal racks or metabolism cages.
What is animal census?
The number of animals (or cages), that are being used for a particular study and periodically recorded. Can be done by actual animal count or by subtracting animals that have been removed since an earlier head count.
What is an auditor?
Person who examines financial records and compares them against suppliers bills for same items. Also review financial balance sheets and other financial reports to help ensure that business is operating lawfully and in a financially responsible way.
