University of Phoenix Material Week Three Health Care Financial Terms Worksheet Understanding health care financial terms is a prerequisite for both academic and professional success. This assignment is intended to ensure you understand some of the basic terms used in this course. Complete the worksheet below according to the following guidelines: In the space provided, write each term’s definition as used in health care management. You must define the term in your own words.
In the space provided after each term’s definition, summarize a health care management scenario that illustrates the importance of the skill, concept, procedure, or tool to which the term refers. In the scenario, you may wish to consider the following: o Why is the skill, concept, procedure, or tool necessary for accurate record keeping, operational efficiency, excellent patient services, employee management, regulatory compliance, reducing costs, forecasting, and so forth? What successes are enabled by an adequate understanding or appropriate application of the skill, concept, procedure, or tool? o What risks or failures are associated with an inadequate understanding or inappropriate application of the skill, concept, procedure, or tool? Save the completed worksheet as a Microsoft Word document with your name in the file name. Submit the file to your instructor. Worksheet Submitted By:  |Term |Definition Scenario | |Capital Expenditure |A subsection of a company’s master budget that |Covers the revenues and expenses over a five or even a ten-year | |Budget |deals with expected capital expenditure within a |period of time. | | |defined period. | | |Direct Cost |A price completely attributed to the production of |Refer to materials, labor and expenses related to production of a | | |specific goods or services. product. | |Flexible Budget |A budget created using budgeted revenue and/or |Used to review the prior performance of the unit, department, or | | |budgeted cost amounts. |organization | |Operating Budget |A budget constructed on factors based on |Deals with actual short-term revenues and expenses necessary to | | |organizational structure, reporting system, and the|operate the facility for a year’s time. | |manager’s scope of responsibility and controllable | | | |costs. | | |Responsibility Center|Manager is responsible for a particular set of |A well-designed responsibility accounting system should collect | | |activities. |and report revenue and cost information by areas of | | | |responsibility. |