Common types of budgets

According to Clowes and Scriven (2015), the common types of budgets include the master budget, cash flow budget and financial budget. First, a master budget summarizes the financial projections for all the activities of a business during a given duration. An example of a master budget is the budget created by a company for purposes of expansion planning. Secondly, a cash flow budget summarizes the projected cash inflows and outflows during a given period. An example of a cash flow budget is the budget created by a company to determine whether it will have money to start new projects before it has been paid for all projects in progress. Thirdly, a financial budget summarizes the company’s assets, cash flow, income and expenses. An example of a financial budget is the budget prepared by a company to assess its market value.

Q 2:

Budgeting is the process of planning for the financial consequences of the activities of an entity with a specified duration. The process involves the preparation of different financial statements to capture the expected financial results.

Q 3:

 A direct cost is a cost that can be attributed directly to the production of goods and or services. The direct cost includes the cost of raw materials. On the other hand, an indirect cost is a cost that an organization cannot attribute to a specific product or service (Drury, 2016). An example of an indirect cost is depreciation.

Q 4:

Productive hours constitute all the time that employees are paid to perform their duties and responsibilities in the workplace. An example of productive hours is the time spent by a nurse providing direct care to a patient (Penner, 2013). On the other hand, non-productive hours constitute all the time that an employee is paid without providing any direct or indirect services to the employer. An example of non-productive hours is paid sick leave.

Q 5:

HMOs, PPO and POS are types of health insurance plans. The initials, HMO, stand for Health Maintenance Organization (HMO). This insurance plan allows the users to obtain health care services through a network of specified providers. An example of an HMO in Florida is Vista Health Plan. The initials, PPO, stand for Preferred Provider Organization. This insurance plan provides coverage through the HMO type of network but also covers providers outside the network (Healey & Evans, 2014). An example of a PPO in Florida is Florida Blue. The initials, POS, stand for Point of Service. This insurance plan is a hybrid of HMOs and PPOs. It allows the user to access the benefits provided under both the HMO and PPO plans. An example of a POS in Florida is Aetna.

Q 6:

The initials, D.R.Gs, stand for diagnosis-related groups. It is a classification system used to guide the assessment of costs and the reimbursement for health care services based on the patient’s diagnosis, complications, age and gender.  Reimbursements made under the D.R.G system are pre-calculated and the amount fixed for each disease. Therefore, the hospital is reimbursed a specific amount for a patient in a category regardless of the number and types of services rendered (Green, 2018). The D.R.G system is intended to reduce healthcare costs by discouraging the provision of unnecessary services and technologies.

Q 7:

My nursing unit uses several strategies for cost-conscious nursing practice. These strategies include the use of drainable pouches and reusable absorbents. These strategies provide an effective way for the unit to cut costs without jeopardizing the safety and quality of care provided.