GH773
This is the term associated with this equation:
revenue (from user fees/sales)/total cost.
Cost recovery rate
This is what you try to avoid with proper internal financial management controls.
Fraud & the feds
This is the term for the 12 month period of an organization.
Fiscal Year
If the fixed costs of a health center are $15,000 and variable costs are $60 per visit (AVC). The health center charges $100 per visit (p).
What is the break-even volume of visits (X)?
Revenues = Total Cost
100*X = 15,000 + 60*X
X*(100 - 60) = 15000
X = 15000/40 = 375
This is what it means when a hospital debt ratio is greater than 100%.
total liabilities / total assets; Ratio > 100% means that the hospital has more debt than assets (negative net worth). As the ratio increases, there is a higher likelihood of bankruptcy.
This is the term when a company is worth $3B and found an error of $2M.
Materiality
This is the name of the Halloween musical Amma and Bruce like. Let's do the time warp again!
Daily Double
Rocky Horror Picture Show
This is the general threshold for variances we introduced in class.
10%
This is why it is important to account for inflation in multi-year budgets.
Various answers
This is what a liquidity ratio of less than 1.0, means for an organization.
Formula: (Current assets - inventory) / Current liabilities
If < 1.0, current assets are less than current liabilities and organization may not be able to meet financial obligations (pay bills when due)
This is what Bruce was doing when he got his injury.
Daily Double
Rock Climbing
These are the meanings of every variable in the break-even equation B + p(X) = FC + AVC(X)?
B ; P ; X ; FC ; AVC
B = budget/donations available to use
p = price of service (fee for clinic visit)
X = quantity (number of visits per year)
FC = fixed costs (does not vary with visits)
AVC = average variable cost per visit
The Public Health Board of Randolph, MA had an annual operating budget in 2011 of $197,000 (call this total cost)
In 2011, they collected $70,000 from fees and permit charges (restaurants, parking, speeding tickets, summer camps, etc.).
What is the cost recovery rate (as a percentage)?
CR Rate = (70,000/197,000)*100 = 35.5%
This is the name of session 12.
Daily Double
Potpourri
In year 1, the budget was $500,000. In year 2, the budget was $700,000 then what is the percent change from year 1 to year 2?
(700,000-500,000)/500,000 = 40%
Fill in the blanks
What a company or nonprofit organization “owns and owes” __________________
Financial flows over time _____________
A snap-shot of the organization at one point in time _______________
$ Coming in and $ going out ____________
Daily Double
Balance sheet
Income statement
Balance sheet
Income Statement
This is one of the sources of Bruce's slides for session 9A.
Chat GPT
This is the name of the assignment that was confusing.
These are two approaches to accounting we discussed in class.
Single and double entry accoutning
If the Ababio company received a grant for $50,000 from the Gates Foundation in October and at the end of April they had $25,000 remaining, what is the burn rate?
(50,000-25000)/7= 5,571 per month
This is the term for when the budget differs from the actuals.
Variance
This type of analysis is used to determine the short-term financial health of an organization.
Contribution analysis
This is the number of nephews Amma has.
Daily Double
3
This is the equation for profitability margin ratio
(Total Operating Revenue – Total Operating Expenses) / Total Operating Revenue
If the total cost of a health clinic is $525,600 before the start of a full cost analysis, then what is the total cost after the full cost analysis?
$525,600