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Section B requirements
1. Calculate expected bad debt expenses on an accrual basis for the coming year.
2. Calculate an expense budget on an accrual basis for the coming year. The expense budget does not require detailed information by program or department, but should show each type of expense such as salaries and supplies. Be sure to consider the impact of capital acquisitions on the expense budget.
3. Combine the revenue (Section A) and expense budgets to present an operating budget for the coming year.
Section A requirements
1. Calculate patient revenue on an accrual basis for the coming year. Subdivide rev- enue by program, and within each program subdivide it by type of payer.
2. Calculate endowment revenue on an accrual basis for the coming year.
3. Prepare a revenue budget on an accrual basis, including all sources of revenue discussed previously. The revenue budget does not have to show all of the detail from requirements 1 and 2, but should show each major source of revenue, such as patient services and endowment.
XYZ Coating Company has reviewed four new processes for improving its coating line. The four processes, labeled A, B, C, and D, use different technology and have different capacities. All have the same level of production and lifetime.
Did the multifactor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?
What would be the annual inventory holding cost?
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