Part 1 – 2010 Operating Budget
· Review the “2009 Budget Issues – Nurses” file
· Decide which of the two highlighted options you will implement from the Nursing Statistics memo of the “2009 Budget Issues – Nurses” document (See attachment).
· Create a new 2010 Operating Budget based on the labor decision you select from the Nursing Statistics memo. Use the Health Care Budget assignment as the foundation to develop your new projected budget.
Part 2 – Analysis Paper
Write a 1050 to 1,400 word paper in which you detail the following:
- Explain the decision-making processes in creating a budget.
- Explain the role of variance analysis in maintaining an operating budget.
- Differentiate between managerial accounting and financial management.
- Analyze how generally accepted accounting principles in the health care industry apply to your Operating Budget Projection.
- Analyze the decision between the two labor alternatives facing the management of PFCH and the annual cost increase of each.
- Evaluate the labor alternative you would recommend. Your justification should present numbers related to fiscal management including how each decision impacts the 2010 Budget Projection.
- Analyze the effect of the labor alternative you recommended would have on the operating budget with respect to each of the following:
- The opportunity cost of your recommendation.
- How your recommendation impacts employee satisfaction.
- How your recommendation impacts patient care and patient satisfaction.
Cite a minimum of four sources.
Format your sources consistent with APA guidelines