BHA 4053 Management in Health Care Administration

BHA 4053 Management in Health Care Administration

Question 1

  Which of the following is not one of the three things
needed to determine when the very first budget steps have to be taken in any
given year?

	The date that the budget must be presented to the board.
	The amount of time needed between budget activities.
	The amount of time needed for each activity.
	The outcome of each activity.

Question 2

  _________ is a concept sometimes used in volume
budgeting, and it is, often employed as the means to balance a budget that for
one reason or another does not come out right the first time.

	Demographic changes
	Physician inputs
	Bonds
	Wishful thinking

Question 3

  Labor costs typically make up between _________ of
all expenses in a typical healthcare organization.

	40-55%
	50-70%
	20-35%
	60-70%

Question 4

  Which of the following is one of the cons of
bottom-up budgeting?

	Administration is perceived as autocratic, not participative.
	There is less chance of the managers needing to redo their work to “balance the budget” as the assumptions change.
	The budget volumes may be closer to reality.
	Managers have no incentive to set aggressive targets.

Question 5

_________ is defined as revenues and expense levels imposed
by the administration and directed down to the manager who is expected to
achieve them.

	Top-down budgeting
	Bottom-up budgeting
	Capital budgeting
	Administrative budgeting

Question 6

  _________ is defined as revenues and expense levels
as determined by each department manager and aggregated to establish the
organization-wide budget.

	Top-down budgeting
	Bottom-up budgeting
	Bottom-down budgeting
	Organization-wide budgeting

Question 7

  Which of the following is NOT one of the elements of
the budget calendars used at RHMC?

	outcome
	responsible parties
	activities
	date

Question 8

  Which of the following is one of the cons of top-down
budgeting?

	Administration is perceived as autocratic, not participative.
	There is less chance of the managers needing to redo their work to “balance the budget” as the assumptions change.
	The budget volumes may be closer to reality.
	Managers have no incentive to set aggressive targets.

Question 9

  One of the key inpatient volume drivers is _________.

	cost.
	length-of-stay statistics.
	time of the year.
	wishful thinking.

Question 10

  Which of the following is a pro of presenting a
budget to the board of directors for approval 70 to 90 days before the next
budget year begins?

	There may not be enough time to prepare and deliver the results of the approved budget to the department managers.
	The data and information used to project volumes is not current.
	The data and information used to prepare the budget, particularly the volumes, are the most current available.
	There is more time to prepare and deliver the results of the approved budget to the department managers.

Question 11

  Discuss the most important steps in the operating
budget process. Why are these more important than the other steps?

Question 12

  Which is better the top-down budgeting process or the
bottom-up methods? Why?