Explain the relationship among the static, budget, flexible budget, and actual r

Question

Explain the relationship among the static, budget, flexible budget, and actual results. Assume that a group practice has both capitated and fee for service (FFS) patients. Furthermore, the number of capitated enrollees has changed over the budget period. In order to calculate the volume variance and break it down into enrollment and utilization components, how many flexible budgets must be constructed? Consider the following 2011 data for Newark General Hospital (in millions of dollars): Calculate and interpret the profit variance. Calculate and interpret the revenue variance. Calculate and interpret the cost variance. Calculate and interpret the volume and price variances on the revenue side. Calculate and interpret the volume and management variances on the cost side. How are the variances calculated above related? Here are the 2011 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars): What does the budget data tell you about the nature of Wendover's patients: Are they capitated or fee-for-service? Calculate and interpret the following variances: Revenue variance Volume variance Price variance Enrollment variance Utilization variance

Explanation / Answer

Dear user please dont post multiple questions

8.1 Static Budget Flexible Budget Actual results Revenue $4.7 $4.8 $4.5 Costs $4.1 $4.1 $4.2 Profits $0.6 $0.7 $0.3 a) profit Variance Using static budget .3-.6 $0.3 Unfavourable Using flexible budget .3-.7 $0.4 Unfavourable B) Revenue variance Using static budget 4.7-4.5 $0.2 Unfavourable Using flexible budget 4.7-4.8 $0.1 Unfavourable C) Cost variance Using static budget 4.2-4.1 $0.1 Unfavourable Using flexible budget 4.2-4.1 $0.1 Unfavourable D) Volume and price variance Static-Flexible 4.7-4.8 $0.1 E) Cost Side Static-Flexible 4.1-4.1 $0.0

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.