Hospital Budget Analysis Paper

Introduction I attended the Saturday Lab 1 session discussing the Denison Specialty Hospital case study. In our session, we had a through discussion into the different budget terminology. I learned about the difference between accrual and cash accounting methods, which is based on the timing of when the revenue and expenses are recognized. I also learned about responsibility centers as an organizational unit under the supervision of a manager, who is responsible for its activities and results. In addition, the manager is accountable for the budget of the department that they head. Therefore, a centralized form of management in developing the budget because it makes easier to because the information for the department budget is located in the
Question & Answer The first question inquired into the analytical section of the assignment. I was confused on how to write the paper and how to incorporate the excel information into my analysis. In the lab session, I learned that we should incorporate the data from our excel spreadsheets, but that we do not need to include every calculation or include every budget data into the appendix of our analytical

In Part II, Section D, it mentions that the salaries of the managers are fixed cost while the salaries of the staff are variable costs. I wanted to know how to represent that in my excel spreadsheet. In the meet session, I learned that the fixed salary of the managers amounted to $800,000 and through subtraction from the total salary amount of both the managers and the staff of $6,900,000 resulted in the budgeted variable cost of $6,100,000 for the staff salary. Furthermore, calculating the variable salary of the staff to 10 percent above produces a salary of $6,710,000 while 10 percent below produces a salary amount of $5,490,000. As a result, I was able to complete flexible budget data in my excel