During April, Shvey Clinic Plans for an Activity Level of 2,100

question 94

Essay

During April, Shvey Clinic plans for an activity level of 2,100 patient-visits. Revenue is $48.10 per patient-visit. Personnel expenses are $28,800 per month plus $12.30 per patient-visit. Medical supplies are $1,300 per month plus $8.10 per patient-visit. Occupancy expenses are $8,100 per month plus $2.00 per patient-visit. Administrative expenses are $2,900 per month plus $0.20 per patient-visit.Required:Prepare the clinic's planning budget for April.

---

Definitions:

Cost Management

The process of planning and controlling the budget of a business or project, focusing on reducing costs and increasing efficiency.

Business Process Re-engineering

Business process re-engineering involves fundamentally rethinking and radically redesigning business processes to achieve dramatic improvements in critical measures of performance such as cost, service, and speed.

Radical Approach

An innovative or transformative strategy or methodology that significantly deviates from traditional practices.

Managing Costs

The process of planning, monitoring, and controlling the expenses associated with business operations to maximize profitability.