Top Management Notices a Variation from Budget and an Investigation

question 198

Multiple Choice

Top management notices a variation from budget and an investigation of the difference reveals that the department manager could not be expected to have controlled the variation. Which of the following statements is applicable?

• A) Department managers should be held accountable for all variances from budgets for their departments.
• B) Department managers should only be held accountable for controllable variances for their departments.
• C) Department managers should be credited for favorable variances even if they are beyond their control.
• D) Department managers' performances should not be evaluated based on actual results to budgeted results.

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Definitions:

Claim Scrubber Program

Computer software used in healthcare administration to check medical claims for errors and compliance with regulatory standards before they are sent to insurers for payment.

Group Insurance

An insurance plan that provides coverage to a group of members, usually employees of a company, under a single policy.

Fraud

Deceptive action designed to result in financial or personal gain, often at the expense of others.

Fraud

Deceit or trickery intentionally practiced to gain unfair or unlawful advantage.