Budget Assignment Example | Topics and Well Written Essays - 1250 words

Budget - assigning ExampleThis type of budget helps corporate to have an insight on whether the available in rise will do to finance the anticipated expenditure (Millett, 2011). On the other hand, budget forecast, utilizes monetary figures for previous period to come up with figures for the current period (Brookson, 2000). Therefore, it can be scrutinize that budget is a very central tool that can help to monitor revenues and avoid un needed spending (Millett, 2011). This assignment will tenseness on determining strategies for managing budget within forecast by comparing expenses with the budget and determining the practicable reasons for a variance. Additionally, bench marking techniques will be identified and how they can help to improve time to come budgetary forecast within a hospital. Determine specific strategies to manage budgets within forecasts. Corporate financial managers and senior clinical financial officers whitethorn utilize different strategies for managing budg ets within forecast. Among the suggested strategies that may be use include price variance byline, performance establish schema, zero based strategy, bench marking strategy and activity based strategy (Brookson, 2000). The woo variance strategy, focuses on finding the difference between the budgeted represent and the actual cost .When a negative variance is obtain, it is an indication that the actual cost were more than budgeted cost (Finkler & McHugh, 2008). Therefore, clinical financial officers should find out the reason for a negative variance and employ necessary measures to prevent such discrepancies in the future. Clinical financial officers may use performance based strategy. This strategy employs performance based dashboard and matrices to determine the proximate cause for a variance and look on necessary measures that can be employed to remedy the situation (Brookson, 2000). Additionally, clinical financial officers may hold back zero based strategy to control budge t. In this strategy, each expense incurred is assessed and necessary recommendations are make thereafter (Finkler & McHugh, 2008). Bench marking strategy may be used whereby information of the best perform hospitals may be gathered and analyzed. The information gathered may be used by clinical financial officers and hospital managers to make future budgetary improvements in their respective hospitals. The improvements may be carried out by emulating the best practices from a benchmarked hospital (Finkler & McHugh, 2008). Connectively, clinical financial officers may apply activity based strategy to control budget. In this strategy, hospital operating cost data may be gathered and allotted to specific activities in the hospital (Finkler & McHugh, 2008). Compare five to seven expense results with budget expectations, and expound possible reasons for variance. The following expenses were selected for comparison purposes and the possible reasons for the variances have been explained u nder each expense Supplies 8,418 6,693 (1,725) -25.8% 89,456 84,283 (5,173) -6.1% 79,183 -13.0% The supply expenses were high than the budgeted cost based on above figures. This indicates that the difference between budgeted cost and actual supply cost provided a negative variance (Millett, 2011).The possible reason for a negative supply variance may be attributed to higher demand for medical tools used to attend