Budgeting Model

Question 1

As you read, consider the following questions:

• How has budgeting evolved over time?
• What models are currently being used?
• Is there a budgeting model that works for all businesses?
• How do these budgeting models impact bottom-line?

Once you have considered these questions, respond to the following questions in your initial post: Which budgeting model would you select for your final project company? What are the costs and benefits to this approach?

When responding to two of your peers, identify strengths and/or weaknesses in their argument. If you agree with their argument, point out the items you agree with and provide support for their position. If you disagree with their argument, explain why you disagree and provide support for your position.

Question 2

You have been asked to set a rate for a Surgical-center. Costs are budgeted to be $4,000,000. Per year for projected surgical procedures of 7,000. The Surgical-center expects that 50 percent of its procedures will be Medicare and that Medicare will pay $550 per procedure. The remainder will be charge payers at an expected discount rate of 29 percent.
Question: If a profit of $400,000 is required, what rate per procedure is required?