financial management in healthcare
FINANCIAL MANAGEMENT (HCM-213)
ASSIGNMENT 3
Total of 10 Marks
Q1. Complete the following table.
|
Output |
Total Fixed Cost |
Total Variable Cost |
Total Cost |
|
100 |
|
|
|
|
150 |
|
75,000 |
|
|
200 |
10,000 |
|
|
|
250 |
|
|
|
|
300 |
|
|
|
Q.2
a. Define Break –Even point.
b. From the following information calculate the Break-Even Quantity:
- Price per unit = $75
- Variable cost per unit = $ 25
- Fixed cost = $200, 000
Q3 What is the purpose of the budget? Why are requests for budget revisions necessary? When should a formal request for a budget revision be submitted?
Q4. Identify each responsibility center in the list below as either a service center, cost center (clinical or administrative), profit center (capitated or administrative), or investment center.
a. Radiology department that must control its own costs.
b. Admitting department of a hospital.
c. HMO.
d. Stand-alone outpatient clinic that must earn a 10 percent ROI.
e. Volunteer department with no budget.
f. Development office.