Mac 7: Post CJ

Question 1

True or False

Flexible budgeting and zero-based budgeting uses projection method

Answer 1

-True

Question 2

True or False
In order for an item to fall under Capital Budget, it should meet at least 2 of the following criteria: Time criteria, Price criteria, Purpose criteria

Answer 2

-False

Question 3

True or False
CON is required from a laboratory If the project will exceed $150,00. Its purpose is to control spiraling medical costs, and to avoid duplication of services

Answer 3

-True

Question 4

Very important in the process of operational budgeting in order to know if the laboratory’s budget has been correctly prepared and if there are any lapses, adjustments for the next cycle will be made

Answer 4

-Monitoring and Feedback

Question 5

Deals with more expensive projects of the laboratory that requires extensive paper works 
-Budget
-Capital Budgeting
-Operational Budgeting
-

Answer 5

-​​Capital Budgeting

Question 6

Deals with the everyday expenditures of the laboratory and usually is good for 1 year
-Budget
-Capital Budgeting
-Operational Budgeting
-

Answer 6

-Operational Budgeting

Question 7

One of the narrative tools and it is where the manager will explain why the project is necessary

Answer 7

-Justification

Question 8

Before the start of the cycle should the operational budget be prepared

Answer 8

-6 Months

Question 9

Newly built water analysis section of the laboratory requires an incubator that costs $1500 should fall in
this type of budget
-Budget
-Capital Budgeting
-Operational Budgeting
-

Answer 9

-Operational Budget

Question 10

Defined as planning, forecasting, controlling, monitoring the financial resources of the organization
-Budgeting
-Capital Budgeting
-Operational Budgeting
-

Answer 10

-Budgeting

Question 11

Operational Budget Preparation steps

1) Develop a prediction of the future volume
2) Calculate the ratio between the item and revenue/volume
3) Knowing the items with predetermined cost
4) Comparing the revenue and the expense of the department

Answer 11

1) Develop a prediction of the future volume
2) Calculate the ratio between the item and revenue/volume
3) Knowing the items with predetermined cost
4) Comparing the revenue and the expense of the department

Question 12

Set limit where a project is considered as a capital budget

Answer 12

-$10,000

Question 13

In demand need of COVID testing the city government built its own molecular laboratory, type of
budgeting done is capital budgeting
-Budgeting
-Capital Budgeting
-Operational Budgeting
-

Answer 13

-Capital Budgeting

Question 14

Known as time-adjusted return method

Answer 14

-Internal Rate of Return

Question 15

Operational Budget major parts

Answer 15

1) Revenue and volume figure
2) Itemized cost categories
3) FTEs and labor hours