Term
| What is the difference between data and information? |
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Definition
| Data becomes info when it is organized so as to be useful and appropriate to decision making |
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Term
| ______________________ of ______________________ ____________________ ____________________ is a major function of financial information. |
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Definition
| Facilitation of management decision making |
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Term
| What can a budget be thought of as? |
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Definition
| Quantitative expression of a plan of action |
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Term
| Five main uses of financial info: |
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Definition
1. Evaluating the financial conditions of an entity (viability of an org)
2. Evaluating stewardship within an organization (systems designed to prevent loss of assetts or resources through malfeasance)
3. Assessing the efficiency of operations (ratio of outputs to inputs)
4. Assessing the effectiveness of operations (attainment of objectives)
5. Determining the compliance of operations with management directives (compliance between diff. levels of management) |
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Term
| What are the two chief positions related to financial management of an organization: |
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Definition
1. Controller (AKA comptroller)
2. Trasurer |
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Term
| 4 types of health related business organizational forms: |
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Definition
1. non-profit, business-oriented organizations
2. For profit health care entities
3. Governmental health care organizations
4. Nongovernment, nonprofit, health care organizations |
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Term
| A ____________________________________ of an organization serves as a basis for management control. |
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Definition
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Term
| A ____________________________ serves as an establishment of _________________ and _______________ financial plans that are consistent with an organizations ___________ and capabilities |
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Definition
| -strategic financial plan, realistic, achievable, objectives |
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Term
| Integration of __________________ and _____________________ planning is important to management control |
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Definition
| Intregration of strategic and financial planning |
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Term
| Strategic vs. financial planning |
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Definition
Strategic=development of mission goals and plan of action
Financial= financial feasability of action plan |
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Term
| Budgets are key ____________, _______________, and ________________ documents of the organization. |
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Definition
| Key planning, control and audit documents of the organization |
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Term
4 steps involves in the development of a financial plan:
1. Assess the _______________________
2. Define ____________________
3. Define ________________
4. Asses the ______________________ |
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Definition
1. Assess the present financial position
2. define growth needs in the planning period
3. define the capacity to acquire needed funds
4. Assess the 'reasonableness' of obtaining required financial resources |
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Term
Key elements of management control process:
-Determining _____________ and _____________
-The ___________ of control
-_________________ of management control |
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Definition
1. Determining efficiency and effectiveness
2. The unit of control
3. 'Phases of management control |
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Term
Determining efficiency and effectiveness
-What is efficiency? |
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Definition
| Measured by comparison with a standard (doing things RIGHT) |
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Term
Determining efficiency and effectiveness
What is effectiveness? |
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Definition
| Concerned with the relationship between and organizations output and its objectives or goals (DOING the RIGHT THINGS) |
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Term
The unit of control
-What is management control focused on? |
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Definition
| RESPONSIBILITY center or departments |
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Term
| Phases of management control: |
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Definition
1. Programming
2. Budgeting
3. Accounting
4. Analysis and Reporting |
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Term
| Budgets are potentially powerful ________________ and _________________ tools |
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Definition
| Budgets=potentially POWERful planning and ANALYTICAL tools |
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Term
| What is teh primary tool that managers use for control? |
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Definition
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Term
Objectives of the budgetary process:
1. To prove a ______________________________ for the implementation of policies and work plans for the organization
2. To provide a basis for ______________________ of financial performance related to activity plans
3. To provide a __________ __________ for the control of costs
4. To create ___________ ______________ throughout the organization |
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Definition
1. To provide a written (quantitative) expression for the implementation of policies and work plans of the org.
2. To provide a basis for the evaluation of financial performance related to activity plans
3. To provide a useful tool for the control of costs
4. To create cost awareness throughout the organization |
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Term
| Who are likely participants of the budgetary process? |
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Definition
-Governing board
-Chief executive officer
-Controller
-Responsibility center managers (department managers)=focal points of control
-Budgetary committee |
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Term
| What is the starting point of the budgetary process? |
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Definition
| An assessment of the organizations missions, goals and objectives |
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Term
| Four major components of the complete budget: |
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Definition
-Statistics budget
-Expense budget
-Revenue budget
-Cash budget |
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Term
| What is the sum of the stastical, expense, and revenue budget referred to as? |
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Definition
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Term
The ___________ _____________ includes items that can be forecasted.... provides measures for projecting service activities and revenue
-basis for the development of expense and revenue budgets |
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Definition
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Term
| The ___________________ budget is a prediction of control expensives. |
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Definition
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Term
| A _____________ ________________ identifies sources of funds. |
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Definition
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Term
| A ____________ ______________ includes budget financial statements. |
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Definition
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Term
| A ___________________________________ is a subset category of projected expenditures for items that have useful lives or expected periods of services greater than one year. |
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Definition
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Term
| What does indirect costs refer to? |
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Definition
| Allocated costs--ie share of utilities, share of office space, housekeeping, shared equipment, etc. |
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Term
| Ways of approaching the budgeting process: |
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Definition
1. Incremental budgeting (uses previous year fiscal operating plan)
2. Zero-based budgeting
3. Top down vs. bottom up budgeting
4. Fixed vs. flexible exprense budgeting |
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Term
| In regards to budget consideration, must consider integrating _____________________ resources from ____________ _________________. |
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Definition
| Integrating financial resources from multiple sources |
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Term
| ______________________ is the Process of recording and summarizing the financial transactions and interpreting their impacts of the activities and affaires of an organization |
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Definition
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Term
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Definition
| General accepted accounting principles |
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Term
| What is accounting data used for? |
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Definition
| Making management reports |
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Term
| Four types of financial statements: |
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Definition
1. balance sheet
2. income statement
3. cash flow statement
4. statement of changes in net assetts |
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Term
| ___________________________ must be factored in decision making in regards to ___________________ in new property, facilities, equipment and inventory that is necessary to provide ______________ and _____________. |
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Definition
-Cost of money
-regarding investments in new property, facilities, equipment and inventory
-programs and services |
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Term
| Government is the borrowing agent that issues what? |
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Definition
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Term
| Funding for public health agencies: |
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Definition
-general tax revenues
-local tax levies
-fees for services
-grants |
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Term
| Who governs taxation related to funding for local PH agencies? |
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Definition
| State statutes and authority |
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