NUR 621 TOPIC 1 ASSIGNMENT OPERATIONAL
BUDGET PRESENTATION FINAL PAPER 2026
COMPLETE QUESTIONS AND ANSWERS FULL
SOLUTION GRADED A+
◉ What does a budget do. Answer: Predicts future demands for
services, projects available financial resources, requires updates as
conditions change
◉ The operating budget. Answer: combines annual revenue budget
and annual expenditure budget
◉ Expenditure budget comprised of. Answer: approved operating
budgets for all departments, approved capital replacements and
improvements, annual depreciation and amortization
◉ Revenue budget comprised of. Answer: projected revenues from
medical services, projected non-patient revenues
◉ Major cost headings for department budgets (the operating
budget). Answer: salaries and benefits, operating expenses
(equipment rentals, continuing education costs, repairs, misc costs),
Allocated costs (maintenance, utilities, insurance, etc.)
,◉ Developing the operating budget. Answer: dept managers project
salaries/benefits based on current expenses and projected changes,
project expenses based on recent experience, known increases in
prices and estimates of future costs, dept budgets combined to
create this
◉ Full time equivalent (FTE) position (authorized personnel
budget). Answer: standard is one employee working 8 hrs/day, 5
days/wk, 52 wk/yr (2080 hrs/year). Vacation time and sick days not
counted. Personnel requirements for depts are stated as number of
FTEs even if many positions are part time
◉ Capital Budget. Answer: schedules purchased of assets with long
useful lives
◉ Capital budget business defines/determines. Answer: the types of
purchases that are considered capital (typical def: cost >$2500 and
life > one year. determines years of capital budget (typical span 5-
10yrs. review existing capital assets and their expected
obsolescence dates
◉ Capital budget estimates. Answer: costs of capital assets than will
need to be replaced. Calculat total costs of cap asset replacement for
each year of budget. Determine how to pay for cap expenditure
, (internally generated funds/borrowing. Capital budget updated
annually
◉ Statistical budget. Answer: projects revenues from services to
patients. all services listed, volumes (encounters) of services
estimated. weight (multiple of base charge) assigned to each service
◉ Revenue budget. Answer: uses statistical budget data times
projected revenue per base charge
◉ the cash budget. Answer: addresses flutuations of encounters and
reimbursements. annual budget dived into monthly columns,
monthly portions allocated based on past exp/known changes. some
months may have negative cash flows, planning will allow facility to
cover those months w/o borrowing
◉ First with its projected demand for services. Answer: statistical
budget
◉ prepared based on personnel and operating costs needed to meet
the demand. Answer: expense budget
◉ prepared and first year of that budget included in annual budget.
Answer: capital budget
BUDGET PRESENTATION FINAL PAPER 2026
COMPLETE QUESTIONS AND ANSWERS FULL
SOLUTION GRADED A+
◉ What does a budget do. Answer: Predicts future demands for
services, projects available financial resources, requires updates as
conditions change
◉ The operating budget. Answer: combines annual revenue budget
and annual expenditure budget
◉ Expenditure budget comprised of. Answer: approved operating
budgets for all departments, approved capital replacements and
improvements, annual depreciation and amortization
◉ Revenue budget comprised of. Answer: projected revenues from
medical services, projected non-patient revenues
◉ Major cost headings for department budgets (the operating
budget). Answer: salaries and benefits, operating expenses
(equipment rentals, continuing education costs, repairs, misc costs),
Allocated costs (maintenance, utilities, insurance, etc.)
,◉ Developing the operating budget. Answer: dept managers project
salaries/benefits based on current expenses and projected changes,
project expenses based on recent experience, known increases in
prices and estimates of future costs, dept budgets combined to
create this
◉ Full time equivalent (FTE) position (authorized personnel
budget). Answer: standard is one employee working 8 hrs/day, 5
days/wk, 52 wk/yr (2080 hrs/year). Vacation time and sick days not
counted. Personnel requirements for depts are stated as number of
FTEs even if many positions are part time
◉ Capital Budget. Answer: schedules purchased of assets with long
useful lives
◉ Capital budget business defines/determines. Answer: the types of
purchases that are considered capital (typical def: cost >$2500 and
life > one year. determines years of capital budget (typical span 5-
10yrs. review existing capital assets and their expected
obsolescence dates
◉ Capital budget estimates. Answer: costs of capital assets than will
need to be replaced. Calculat total costs of cap asset replacement for
each year of budget. Determine how to pay for cap expenditure
, (internally generated funds/borrowing. Capital budget updated
annually
◉ Statistical budget. Answer: projects revenues from services to
patients. all services listed, volumes (encounters) of services
estimated. weight (multiple of base charge) assigned to each service
◉ Revenue budget. Answer: uses statistical budget data times
projected revenue per base charge
◉ the cash budget. Answer: addresses flutuations of encounters and
reimbursements. annual budget dived into monthly columns,
monthly portions allocated based on past exp/known changes. some
months may have negative cash flows, planning will allow facility to
cover those months w/o borrowing
◉ First with its projected demand for services. Answer: statistical
budget
◉ prepared based on personnel and operating costs needed to meet
the demand. Answer: expense budget
◉ prepared and first year of that budget included in annual budget.
Answer: capital budget
