1. Which budgeting philosophy is based on the current fiscal year's authorized budget and adds funds to account for inflation in the upcoming budget year?

   a. Zero-base

   b. Incremental

   c. Top-down

   
   

   d. Bottom-up

2. What term refers to the number of units of service provided for patient care which are estimated on historical activity and environmental factors?

   a. Fee schedule

   b. Medical service revenues

   c. Encounters

   d. Revenue budget

3. Dr. Leroy is budgeting for the upcoming year. As he meets with the nursing executives, he explains how every position needs to be justified, each expenditure line item analyzed to determine necessity and cost, and strategies to reduce spending discussed. Which type of budgeting is Dr. Leroy referring to?

   a. Incremental

   b. Top-down

   c. Bottom-up

   d. Zero-base

4. George Francis works at Gentry Medical Center in Florida. The Medical Center experiences a higher volume of business closer to fall when many of the patients return for the winter from their summertime spent in the northern states. George is meeting with his supervisor to review the budget and show them where there is a negative cash flow. Identify the month that George will be showing to his supervisor.

   	July	October	November	December
   Medicare/Medicaid	$100,000	$150,000	$195.000	$200,000
   Private Pay	$30,000	$50,000	$60,000	$60,000
   Other Insurance	$50,000	$35,000	$65,000	$55,000
   Cash Receipts
   Personnel Costs	$150,000	$75,000	$90,000	$100,000
   Supplier Payment	$50,000	$30,000	$30,000	$40,000
   Capital Assets	$25,000	$40,000	$38,000	$37,000
   Cash Disbursements
   Monthly Cash Flow

   a. July

   b. October

   c. November

   d. December

5. George Mitchell Medical Center is budgeting for next year. The medical center is trying to determine how many patients do they need to cover their costs for the year. There are several variables to determine the break-even analysis. Which of the following is not used in determining the break-even analysis?

   a. Variable costs

   b. Number of patients

   c. Fixed costs

   d. Units of service

6. Dr. John is budgeting for the Frihman Medical Center. As Dr. John meets with the unit management team, she explains how every manager has input in the budgeting process, since they know the unit and their budget needs. Which type of budgeting is Dr. John referring to?

   a. Incremental

   b. Zero-base

   c. Top-down

   d. Bottom-up

7. Hamilton Dental is a community dental facility in a small town. Hamilton Dental has five dental assistants and two hygienists. Total fixed cost has been calculated at $300,000 annually. Indirect costs, including supplies, has been identified at $35 per unit. Average revenue for each unit of service is $75. Find the break-even point.

   a. $5000

   b. $7000

   c. $7500

   d. $8500

8. Which of the following is not used to determine the statistical budget?

   a. Patient care revenues

   b. Reimbursement rates

   c. Medical service revenues

   d. Units of service provided