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Evaluating budgeting systems Children's Hospital of the King's Daughters Health System in Norfolk. Virginia, introduced a new budgeting method that allowed the hospital's annual plan to be updated for changes in actual operations. For example, if the budget was based on 1,000 patient-days (number of patients X number of days in the hospital) and the actual count rose to 1,200 patient-days, the variable costs of staffing, lab work, and medication costs could be adjusted to reflect this change. The budget manager stated, "I work with hospital directors to turn data into meaningful information and affect change before the month ends." Why are these methods superior to the former approaches?

BuyFind

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883
BuyFind

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

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Chapter
Section
Chapter 13, Problem 13.2.2C
Textbook Problem

Evaluating budgeting systems
Children's Hospital of the King's Daughters Health System in Norfolk. Virginia, introduced a new budgeting method that allowed the hospital's annual plan to be updated for changes in actual operations. For example, if the budget was based on 1,000 patient-days (number of patients X number of days in the hospital) and the actual count rose to 1,200 patient-days, the variable costs of staffing, lab work, and medication costs could be adjusted to reflect this change. The budget manager stated, "I work with hospital directors to turn data into meaningful information and affect change before the month ends."

Why are these methods superior to the former approaches?

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Chapter 13 Solutions

Survey of Accounting (Accounting I)
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