Exhibit 16-2 on page 186 of your textbook has a checklist for building an operating budget. You have been asked by your supervisor to fill out the checklist based on a new program/service that you recently recommended for a healthcare environment (e.g., purchasing a new MRI, extending the hours of an urgent care clinic). Complete the checklist for this program/service.

Exhibit 16-2 is as follows...

1. What is the proposed volume for the new budget period?

2. What is the appropriate inflow (revenues) and outflow (cost of services delivered) relationship?

3. What will the appropriate dollar cost be? (Note: this question requires a series of assumptions about the nature of the operation for the new budget period.) 3a. Forecast service-related workload. 3b. Forecast non-service-related workload. 3c. Forecast special project workload if applicable. 3d. Coordinate assumptions for proportionate share of interdepartmental projects.

4. Will additional resources be available?

5. Will this budget accomplish the appropriate managerial objectives for the organization?