Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Budget assumptions for this exercise include both inpatient and outpatient revenue and expense. Assumptions are as follows: As to the initial budget: The budget anticipated

image text in transcribed
Budget assumptions for this exercise include both inpatient and outpatient revenue and expense. Assumptions are as follows: As to the initial budget: The budget anticipated 30,000 inpatient days this year at an average of $650 revenue per day. . Inpatient expenses were budgeted at $600 per patient day. The budget anticipated 10,000 outpatient visits this year at an average of $400 revenue per visit. Outpatient expenses were budgeted at $380 per visit. As to the actual results: Assume that only 27,000, or 90 percent of the inpatient days are going to actually be achieved for the year. The average revenue of $650 per day will be achieved for these 27,000 inpatient days. The outpatient visits will actually amount to 110 percent, or 11,000 for the year. The average revenue of $400 per visit will be achieved for these 1,100 visits. Further assume that, due to the heroic efforts of the Chief Financial Officer, the actual inpatient expenses will amount to $16,100,000 and the actual outpatient expenses will amount to $4,000,000. Required Set up three worksheets that follow the format of those in Example 16A above. However, in each of your worksheets make two lines for Revenue; label one as Revenue-Inpatient and the other Revenue-Outpatient. Add a Revenue Subtotal line. Likewise, make two lines for Expense: label one as Expense-Inpatient and the other Expense-Outpatient Add an Expense Subtotal line. . Using the new assumptions, complete the first worksheet for "As Budgeted." Using the new assumptions, complete the second worksheet for "Actual" Using the new assumptions, complete the third worksheet for "Static Budget Variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Finance And The Mechanics Of Insurance And Reimbursement

Authors: Michael K. Harrington

2nd Edition

1284169030, 978-1284169034

More Books

Students also viewed these Finance questions

Question

2 What participation techniques are used?

Answered: 1 week ago