Excel exercise | Operations Management homework help


An operating budget combines forecasts for revenues and expenses. Projections for the next fiscal year are made on the basis of some reasonable assumptions.

Don't use plagiarized sources. Get Your Custom Essay on
Excel exercise | Operations Management homework help
From as low as $5/Page
Order Essay

Budgeting Revenues

  • First, forecast anticipated census volume by pay type. Next, forecast the anticipated reimbursement.
  • Basic equation: R = Q × P, Q (quantity: patient days) × P (price: charges, reimbursement)

Note: Budgeting software is programmed to calculate patient days as average daily census figures are entered.

  • Software programs calculate revenues automatically as the census and per diem rates are entered.
  • Ancillary and other revenues are added to arrive at the total revenue figure

Excel Exercise Exhibit17_9.exercise.xlsxPreview the document

The Excel file for Exhibit 17-9 has been provided. The charges and reimbursement rates for October 2018 are given. Assume that private-pay and private insurance rates will be increased by 4% on January 1, 2019, and that all third-party reimbursement rates will increase by 3%. The same increases will take place in October 2019. Existing Veterans rates will continue till the contract expires. Use the census projections in Exhibit 17–9 to calculate the total revenue that will be budgeted for January 2019. Calculate the budgeted revenue for each of the 12 months and for the entire year 2019.

Note that the revenue projections do not include ancillary and other revenues.

Budgeted Expenses

  • Departmental managers should give their inputs
  • Projecting labor costs is the most challenging aspect, but labor hours for some departments are fixed
  • Allowances for overtime, training, and orientation should be determined
  • When funds are allocated for reducing absenteeism and turnover, the budget should anticipate future cost savings
  • After projecting labor hours, average hourly wages need to be projected, taking into account wage increases and labor market conditions
  • Labor cost (C) = Hours of labor (H) × Average hourly wage rate (W)
  • Finally, all other anticipated expenses should be included
  • Variable expenses are generally projected on the basis of PPD costs
  • Costs should also be included for marketing and public relations

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Confirm Eligibility