Types of Budget in Health Care Institutions.
There are three kinds Of budgets: operating, cash flow. and capital. The operat- ing budget is the hospital's primary budget and is built from individual budgets for each hospital department and section. It is the result of a four-step process as fol- lows: (1) projecting units of service, (2) allocating resources, (3) setting rates, and (4) monitoring performance. The cash budget is a prediction of expected cash receipts and disbursements based on the operating budget and the capital budget. The capital budget is a plan for making capital investment decisions and for fi- nancing capital purchases.
Master Budget
A master budget is an aggregate of a company's individual budgets designed to present a complete picture of its financial activity and health. The master budget combines factors like sales, operating expenses, assets, and income streams to allow companies to establish goals and evaluate their overall performance, as well as that
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