7. What is the relationship among accountability, responsibility, and authority with respect to a responsibility center?
12. What does the term variance analysis mean when applied to the financial performance of health care organizations?
16. ROI for an investment center. A new cardiac catheterization lab was constructed at Have a Heart Hospital. The investment in this lab was $1,100,000 in equipment costs and $100,000 in renovation costs. The desired return on investment (ROI) is 12 percent. Once the lab was operating, 8,000 patients were served in the first year and were charged $3,740 for each procedure. The annual fixed cost for the catheterization lab is $2.5 million, and the variable cost is $3,375 per procedure. What was the catheterization lab’s profit? Did this profit meet its desired ROI?
17. Detailed variance analysis. The following are the planned and actual revenues for Cutting Edge Surgery Center. Because it is one of four surgery centers in the community, the administrator is concerned about its rates in relation to the rates of its competitors.
A.Determine the total variance between the planned and actual budgets.
Givens:
Surgical volume
3,500 planned
3,700 actual
Gift shop revenues
$20,000 planned
$21,000 actual
Surgery revenues
$700,500 planned
$950,750 actual
Parking revenues
$18,000 planned
$20,000 actual
7. What is the relationship among accountability, responsibility, and authority
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