The three components involved in the creation of a budget are Revenue, Expense, and the statistics (volume). In what order are each component determined and why. Please explain the differences between a static and flexible budget. As a manager which type of budget would you prefer to operate under? Why? 350 words How does understanding how costs behave assist you in managing a hospital under the Medicare prospective payment system? Please define and explain the following type of expenses and give an example of a business activity from your profession that may change the amount of variable expenses with each definition. Variable expense: Fixed expense: Semi variable or Mixed expense: Labor positions: (Please assign each position a fixed, variable or mixed account status and explain you chose that designation) RN bedside Respiratory therapist Charge Nurse Nurse Manager Why is it important to know and understand each classification during the budget process? 350 words
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