9) Explain the following in relation to your hospital/organization.
a) Benefits of budget control
b) Cost Benefit Analysis
c) Purpose of Auditing
d) Hardware and Software
e) Use of computers
(a). Benefits of budget control
1. Budgets help managers in integrating personnel efforts within the organization towards a common goal. By properly appropriating adequate budgets to different activities within the organization, all activities can be synchronized and all efforts can be coordinated to achieve the organizational objectives.
2. Budgets act as controlling devices to correct any deviations. If the expenditures for a given activity exceed the allotted budget at any point in time, this will signal a deviation from the prescribed course, requiring attention and action by the management. If for example, a departmental manager is given a budget of $ 500 per month for specified supplies, he would be in a position to monitor and control the expenses for supplies.
(b). Cost–benefit analysis (CBA), sometimes called benefit costs analysis (BCA), is a systematic approach to estimate the strengths and weaknesses of alternatives (for example in transactions, activities, functional business requirements or projects investments); it is used to determine options that provide the best approach to achieve benefits while preserving savings. The CBA is also defined as a systematic process for calculating and comparing benefits and costs of a decision, policy (with particular regard to government policy) or (in _______ ________ ________ _______ __________ __________ ____ ________ _______.
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