Question

what type of budget does Advocate Good Samaritan Hospital use?

Answer 1

There are various types of budget availabe for different kinds of organization and for Hospital Business there are also some alternative availabe for budgeting like Operating Budgeting, Capital Budgeting and Cash Budgeting.

In case of operating budget we forecast the expected revenue and expense on the basis of past experiance or trends and find out the forecast profit for the upcoming period.

Capital Budget means allocating amount for acquisition of fixed assets an we know in hospitals there are lot of equipments, furnitures and other fixed assets therfore to calculate that how much amount can be allocated for the specific assets a capital budget is prepared.

Cash budget is use to know the position of cash after before or after allocation the forecasted expenses.

I hope this clear your doubt.

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