Budgeting and Variance Analysis

BIn addition to preparing budgets, as a health care administrator, you must also be able to evaluate whether or not you have achieved your budget using variance analysis. This is important because variance analysis measures the differences between the budget and actual results, and provides administrators with a starting point for correcting financial performance. For this Assignment, you conduct a variance analysis for a health care organization. Determine the total variance between the planned and actual budgets for Surgical Volume. Is the variance favorable or unfavorable? Determine the total variance between the planned and actual budgets for Patient Days. Is the variance favorable or unfavorable?