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Flashcards in Financial Management Deck (27)
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1
Q

management of the finances of a business or organization in order to achieve financial objectives

A

Financial Management

2
Q

elements of financial management

A
  1. Financial planning
  2. Financial control
  3. Financial decision making
3
Q

supply, labor, and overhead money spent on a

product or service

A

Cost

4
Q

system of measuring and reporting information about costs

A

Cost Accounting

5
Q

expenses that can easily be traced directly to an end

product

A

Direct cost

6
Q

not directly related to a billable test but are necessary

for its production

A

Indirect costs

7
Q

change proportionately with the volume of tests performed

A

Variable costs

8
Q

does not change with the volume of tests performed

A

Fixed costs

9
Q

fixed costs that change with increments of volume

A

Step costs

10
Q

need to be looked differently from non-salary costs because salary costs have fringe benefits.

A

Salary costs

11
Q

fringe benefits

A
  • Social Security
  • Health insurance
  • Tuition reimbursement
  • Pension plans
  • Life insurance
12
Q

expenses incurred to produce a product or service

A

Operating costs

13
Q

reagents, electricity, disposable pipettes, salary expense in the production of a test

A

One-time operating costs

14
Q

expenses incurred in analytic equipment, computers and physical plant

A

Capital costs

15
Q

time, price, purpose

A

3 criteria for capital costs

16
Q

means by which a laboratory documents its costs or performing a particular procedure then establishes based on direct and indirect costs

A

Cost Finding

17
Q
  • the total price of services rendered or products sold

- the money of a business is entitled to receive for the services and products it produces.

A

Revenue

18
Q

consists of the total charges at a facility’s full-established rates for provision of inpatient and outpatient care before deductions from revenue are applied.

A

Gross patient revenue

19
Q

process of planning, forecasting, controlling, and monitoring the financial resources of an organization

A

Budgeting

20
Q

provides a target of day-to-day revenues and expenditures that are to be achieved in the forthcoming year

A

Operational budget

21
Q

also known as “predetermined set form”

-uses actual costs, ratios and percent calculations to extrapolate from historical data what the new budget will be

A

Pro forma budget

22
Q

-has no baseline
-requires management to annually evaluate all services
and products

A

Zero-based budget

23
Q

used to fund large capital projects

A

Capital budget

24
Q

difference between the projected budget and actual revenue and expenses

A

Variance analysis

25
Q
  • statement of an organization’s financial position at a specific point in time
  • Generated at the end of an organization’s fiscal year or at the end of the calendar year
A

Balance sheet

Assets = Liabilities + Equity (net worth)

26
Q
  • known as the statement of profit and loss

- summarizes the organization’s revenues and expenses usually quarterly or annually

A

Income statement

27
Q

shows the amount of cash generated by an organizationover a period of time

A

Statements of cashflow

Cash paid out - Cash received = net change