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Flashcards in 6) Fiscal Management Deck (53)
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1

Budget

Mechanism to assess an organization's/department's success and progress

  • Helps the manager control the implementation of a program

2

Planning-Programming-Budgeting System (PPBS)

Plan for a new program developed from the mission and objectives

  • Look at all programs for duplicates
  • Evals cost and revenue against projections

3

Zero-Base Budgeting

Takes a fresh look at each program at the beginning of the budget period and calculates the cost of running the program from as if it never existed

4

Break-Even Budgeting

Traditional type of PT budget where the goal is to break even at the end of the year

  • Based on incremental incr/decr from the prior year

5

Productivity-Based Budgeting

Relies on manager's decisions regarding staffing levels

  • # of PT's needed to provide services

6

Cost Analysis

Determines expenses related to the production of a product/service

  • Cost info is used to manage expenses and set prices

7

Financial Management

Art of obtaining needed funds in the most economical manner and making optimal use of those funds

8

Financial Professional

Studies business administration, accounting, or economics

9

What does being financially savvy do and why?

It protects the income generated by your practice/dept bc you'll understand where your dept stands

10

Financial Statements

Reports that describe the financial position and operating results of an organization for a specified time period

11

Balance Sheet

Summarizes the financial position of an organization as of a particular date

12

Assets

Economic resources owned by an organization

  • Liabilities + Owner's Equity

13

Liquid Assets

Can quickly be converted to cash

14

Fixed Assets

Can't be converted to cash

15

What are some liabilities?

Debt & Accounts Payable

16

Current Liabilities

Must be paid in the short-term (w/in 1yr)

17

Long-Term Liabilities

Paid over the long-term

18

Owner's Equity

Portion of the assets that's owned by the organization's owners; Earnings from profitable operations

  • Can incr through investment of resources by the owner

19

Income Statement

Demonstrates an organizations profit (net income)/loss(net loss) from operations from a specific time period; Evals the organization's performance comparing expenses vs revenue for a specific time period

20

Formula for net income/loss

Revenue + Expenses

21

Revenue

Income received for services sold during a specific period of time

 

22

Operating Revenue

Revenue from sale of services

23

Non-Operating Revenue

Revenue from other services

24

Accrual Basis of Accounting

Revenue is recorded in the period that the revenue was made

25

Cash Basis of Accounting

Revenue is recorded when $ is received

26

Can income come from the assumption of risk and how?

Yes → Occurs in a capitated payment agreement

27

Expenses

Money spent to produce goods/services during a specific period of time

28

Capital Intensive

Money spent on equipment

29

Labor Intensive Expenses

Money spent on salary and benefits

30

Statement of Operations

Compares the projected income statement w/the actual income statement for a period of time

  • Looks at (+)/(-) variance