Fiscal Planning

Question 1

True or False: fiscal planning is an intuitive skill that is easy to understand.

Answer 1

FALSE

it is a learned skill that improves with practice.

Question 2

Fiscal planning should reflect the _______, _________, and ________ of the organization.

Answer 2

1. philosophy
2. goals
3. objectives

Question 3

What is a budget?

Answer 3

a plan that uses numerical data to predict activities over a period of time.

Question 4

Budgeting Methods (4)

Answer 4

1. Incremental
2. Zero-based
3. flexible
4. Performance

Question 5

incremental budgeting

Answer 5

pays for things as they come up - monthly

not good for running businesses

the most simple

Question 6

zero based budgeting

Answer 6

every year you come back to zero.

Every budget cycle is a fiscal year

need reasoning and rationales for items in the budget.

Could work in the hospital

Question 7

Flexible budgeting

Answer 7

goes up and down each year depending on the volume

can go up and down depending on patient rates and staff ratios.

could work in the hospital

Question 8

performance budgeting

Answer 8

based upon outcomes and results

if the nurses are successful, patients are happy your budget will be higher.

Question 9

What is cost effective?

Answer 9

producing good results for the money we are spending

expensive items can be cost effective, and inexpensive items may not.