- Are funds allocated properly to program centers (or functions) based on performance?
- Which proposed performance improvements deserve highest priority?
- What external factors can impact costs of program centers (or functions)?
- Determine and justify if a centralized or decentralized budget approach makes most sense with respect to implementing a performance budget.
- After reviewing Question 3-31 on page 101 and Appendix 3-B, answer the following questions.
- Which method should be used?
- Based on the information available, what are the likely results for the next four quarters?
- How can you estimate the validity of the trend?
- Decide if you are comfortable extending the forecast an additional four quarters.
- Review information about Jamestown Clinic on p.156 (Question 4-47). Answer the following questions.
- Evaluate impact of variable costs to operational budgets as service levels change.
- Consider benefits and costs if service levels increase to increase revenue.
- Given the clinic can handle 1,000 additional patients, determine how much an outside organization should pay in order to send 1,000 additional patients per year.
Sample Solution
