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According to the American Hospital Association (AHA), objectives for the budgeting process include the following:
To provide a written expression, in quantitative terms, of a hospital's policies and plans.
To provide a basis for the evaluation of financial performance in accordance with a hospital's policies and plans.
To provide a useful too for the control of costs.
To create cost awareness throughout the organization.
1. Why do all successful healthcare organizations have a budget?
2. What activities does the budget define?
3. What is the difference between an operational and a capital expenditure budget?
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