HEALTHCARE FINANCE TOPIC

I have answered these questions, but I need a second opinion. Please explain why you choose that answer!

Please answer all the questions below.

1. A health services organization is preparing its annual budget. In doing so, the organization examines each line of the prior year's budget and makes adjustments to reflect changes in the operating environment (for example, inflation). Which of the following budgeting approaches does the organization most likely follow? a. Zero-based budgeting b. Conventional budgeting c. Top-down budgeting d. Participatory budgeting e. Capital budgeting 2. Texas Clinic's budgeted and actual expenses and patient volume are presented below Static Budget Expenses $500,000 Patient volume Actual Results $650,000 60,000 50,000 Assuming all expenses are variable, the portion of the total variance that cannot be explained by the difference in patient volume is a. $50,000, unfavorable b. $50,000, favorable c. $100,000, unfavorable d. $100,000, favorable e. $150,000, unfavorable Give explanation or table in excel! 3. Which of the following statements about budgeting is incorrect? a. In the conventional approach, the prior budget is used as the starting point b. In zero-based budgeting, the prior budget is adopted for the coming year with no changes c. All organizations use annual budgets, but most also use quarterly (or more frequent) budgets d. Out-year budgets are used more for planning purposes than for control e. Bottom-up budgets begin at the department level and then are approved by senior management. 4. Is it true or False? The operating plan focuses on how a business plans to meet its established goals and objectives. Why? 5. Is it true or False: Providers accepting capitated contracts need to receive a per member per month premium sufficient to cover medical costs, administrative costs, and a reserve to protect against medical losses that exceed actuarial estimates. Why