Question: 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 operating plans. For example, if the budget was based on 400 patient days (number of patients × number of days in the hospital) and the actual count rose to 450 patient days,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 operating plans. For example, if the budget was based on 400 patient days (number of patients × number of days in the hospital) and the actual count rose to 450 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 effect change before the month ends.” Use the following topics to guide your thoughts for a reflection post of approximately 150 words: What budget methods are being used under the new approach? Why are these methods superior to the former approaches? Discuss the budget methods used in your current/future company. a) The budget method that is used under the new approach is a flexible budget. A budget is prepared to determine an organizations future course of actions. In the new approach the budget is adjusted with the change in the activity base…View the full answer
