Fundamentals of financial management

What is the healthcare reform act in 2010?

act designed to cut costs and improve efficiency in the laboratory

What are the four basic management functions?

planning, organizing, decision making, implementing/controlling

What is financial accounting?

recording and summarizing transactions

What is management accounting?

using financial data to assist managers with decisions

What is a balance sheet?

a document representing the financial position an organization is in

What is an asset?

resources of an organization

What is a liability?

obligations that an organization has to its creditors

What is owners equity?

the book value of an organization

What is an income statement?

the financial results of an organization over a period of time

What is accrual accounting?

revenues that are reflected as income when they are earned

What is cash basis accounting?

when revenue does not show up until the payment is made

What is revenue?

the earnings of an organization

What are expenses?

charges to the income statement

What are inventories?

value of merchandise that has either been purchased, will be purchased

What are properties, plants, and equipment?

assets used to generate revenue

What are accrued liabilities?

accumulation of costs, not yet due

What is depreciation?

Changes of costs, typically in property value or equipment

What is ratio analysis?

analysis of financial statements

What are three financial ratios?

liquidity, debt equity, profitability

What is an internal ratio?

cost per test, revenue per test, etc.

What is ROI?

return on investment

• determines efficiency in an organization

What is breakeven?

aka cost-volume-profit

• projects costs and revenues for project operations

What is the SWOT acronym used for?

determining an organizations:

• strengths

• weaknesses

• opportunities

• threats

What are examples of direct costs?

reagents, wages, labor, instruments

What are examples of indirect costs?

human resources, facility maintenance

What are two kinds of direct costs?

fixed and variable