Description
The discussion part need to be sent to me by 6/2/20, the assignment portion can be sent to me by 6/5/20, must follow the rubricWeek 5 Overview
Week 5: Advanced Business Concepts
Overview
This unit prepares the student to understand and apply advanced business concepts in relationship to cost concepts, product or service costing,
evaluation and classification of revenue and expenses, and financial statements. The student will be prepared to understand and apply analysis and
interpretation of financial position as a prelude to the financial decision making process and strategic financial planning. Interpretation of the legal
and regulatory climate in relationship to accounting, finance, and economics will be explored.
Objectives
At the end of this unit, the student will be able to:
1. Understand and apply advanced business concepts as they relate to cost concepts, product or service costing and financial
statements.
2. Analyze and interpret financial position as a prelude to the financial decision making process and strategic financial planning.
3. Interpret the legal and regulatory climate.
4. Describe the financial decision making process.
5. Evaluate and classify revenue and expenses.
Content Outline
Advanced business concepts
Strategic financial planning
Analyzing financial position
Financial decision making process
Finance and the legal and regulatory environment
Cost concepts and decision making
Product or service costing
Understanding the financial statements
Managing revenue and expenses
Assignments
Read
Cleverley Text:
Chapter 3: Financial Environment of Healthcare Organizations
Chapter 4: Legal and Regulatory Environment
Chapter 6: Revenue Determination
Chapter 9: Financial Statements
Chapter 11: Analyzing Financial Position
NR722_XH40_Finance and Marketing AO
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Chapter 11: Analyzing Financial Position
Chapter 12: Financial Analysis of Alternative Healthcare Firms
Chapter 13: Strategic Financial Planning
Chapter 14: Cost Concepts and Decision Making
Chapter 15: Product Costing
Explore
Small Business Administration, http://www.sba.gov/
Eastern Mennonite University, Center for Justice and Peacebuilding, Strategy, Structure, and Culture: Aligning our Organizational
Systems, http://emu.edu/now/peacebuilder/2011/06/strategy-structure-and-culture-aligning-organizational-systems/
Business Owner´s Toolkit, Analyzing Your Financial Position, http://www.toolkit.com/small_business_guide/sbg.aspx?
nid=P06_7000
About.com, Financial Statement Analysis for Your Small Business Firm,
http://bizfinance.about.com/od/yourfinancialposition/a/finstateanal.htm
Investopedia.com, How to Analyze a Company´s Financial Position,
http://www.investopedia.com/articles/fundamental/04/063004.asp#axzz1Rq9qRMeD
Institute for Healthcare Improvement, http://www.ihi.org/Pages/default.aspx
Centers for Medicare and Medicaid http://www.cms.gov/
The Joint Commission http://www.jointcommission.org/
American Nurses Credentialing Center https://www.nursingworld.org/ancc/
Written Assignment
Cost Concepts and Decision Making
After reviewing the reading assignments and exploring websites identified, complete this written assignment.
You are the new DNP at Chase Memorial Hospital. You have been asked to explain the budgeting process to the nursing staff during a one-day
symposium. You will complete 3 separate one-day symposiums to ensure all members of the nursing staff are able to attend one of the
symposiums. Consider the following information:
Cost Factors:
Assign yourself an hourly rate of pay commensurate with your role as DNP.
Assign hourly rates of pay for the nursing staff attending one of the symposiums including:
2 nursing leaders
5 nurse managers
16 Registered Nurses at the RN-2 level
17 Registered Nurses at the RN-1 level.
Each symposium is 8 hours in length.
Each symposium includes breakfast and lunch at a cost you will determine based on your geographic area on a per-person basis and
then total cost for breakfast and lunch.
You will provide each participant with a financial analysis manual. You will determine the cost of each manual based on a local
copying center’s cost per page. Each manual will be 100 pages in length. You will determine the type of paper used and if the
manual will be black and white or in color. You also need to determine how the manual will be put together, such as binding. What
will be the cost to put the manual together?
Determine how many hours you will need to complete the 100-page manual and prepare the 8-hour symposium including a
PowerPoint Presentation.
Cost Centers:
Identify the fixed costs associated with the symposium.
Identify the variable costs associated with the symposium
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Identify the variable costs associated with the symposium.
Identify the direct costs associated with the symposium. You may find that there are fixed and/or variable costs that would also be
considered direct costs.
Identify the indirect costs associated with the symposium. You may find that there are fixed and/or variable costs that would also be
considered direct costs.
Identify the direct costs associated with the product or service. You may find that there are fixed and/or variable costs that would
also be considered direct costs.
Identify the indirect costs associated with the product or service. You may find that there are fixed and/or variable costs that would
also be considered direct costs.
Break-Even Point:
Calculate the break-even point using the following formula: px = vx + fc. Where p is the price per unit, x is the number of units, v is variable
cost per unit and FC is total fixed cost. For your break-even calculation, include the cost to pay nursing staff to attend one of the symposiums
as a fixed/indirect cost.
Based on the break-even point value you calculated, would you consider completing the symposiums? Why or why not?
EXAMPLE:
You are developing a consulting business where you will be providing simulation education to associate degree nursing students. You have been
hired by XYZ college to provide one unit of simulation education which includes three experiential simulations. You have determined the
following costs associated with the development of the simulations:
1. You developed the simulation experiences over the course of 80 hours. Your current rate of pay is $32.00/hr. This is a total of
$2560. This is a fixed cost.
2. You have printed 5 manuals to use for the simulations. The manuals are each 60 pages in length and you were billed at .20 per page
for a total of $60.00 including binding. This is a fixed cost.
3. The variable cost includes the time you need to take to present the simulation. Each component is one hour in length for a total of 3
hours. The rate of pay you intend to charge for your time is $100.00/hour. This is a total of $300.00 for the presentations.
Using the formula:
px = vx + fc
p = unknown
x = 1 unit of 3 simulations
v = 300
FC = 2620
P*1 = 300*1+2620
P=2920
You will need to charge $2,920 for the unit to recoup your costs to develop the unit.
APA is not required for this paper except for the title page and the references.
Refer to the Week 5 Written Assignment Grading Rubric for details.
Submit your written assignment to the Assignment Area Drop Box by 8:00 AM Monday (week 6)
Discussions
For all discussions, unless otherwise noted, the deadline for your initial posting is 8:00 a.m. Thursday. You are also to respond to one of your
colleague´s postings for each discussion forum. The deadline for the last of your response postings is 11:59 p.m. Sunday of that week.
Your initial postings require a thorough analysis of the discussion topic. Review the requirements for the posting to ensure you have included all
requirements.
When developing your response postings, consider the question(s) posed to develop your initial discussion posting. Did the peer’s posting answer
all the questions? Did you provide more insight beyond “atta boy”. Consider asking a probing question to obtain additional information, or
provide an experience from your clinical practice. Make sure your response is thorough. Include references to back up what you are discussing
(this is not required for an experience you had). References help to raise your discussion from opinion to a more scholarly level.
Your contribution should be based on Socratic Questioning and:
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Add to the academic value of the conversation, or
Add experiential value, or
Challenge or question prevailing ideas and/or assumptions with new evidence or well-argued, substantiated alternative perspectives,
or
Make connections between contributions of others so that synergies are created.
The deadline for the last of your response postings is 8:00 a.m. Monday of the following week.
Discussion: Financial Statements and Financial Position
Financial Statements:
Meet with your manager or another individual who can assist with answering the questions associated with financial statements and
financial position of your organization. If you are not currently working or you are unable to meet with someone within your
organization to answer the following questions, please feel free to work with another student to complete an initial posting. If two or
more students work together, you only need to provide one initial posting identifying the participants. Each of you is required to
complete your own response posting.
Balance Sheet.
Identify three assets and three liabilities associated with your organization.
Which asset has the greatest value?
Which liability is considered a short-term liability?
Which liability is considered a long-term liability?
Income Statement (statement of operations)
Identify the primary sources of revenue for your organization
Identify which revenue source provides the most revenue
Identify three expenses for your organization
Identify which expense is the highest
Statement of Cash flows
How often is the highest revenue source received?
How long does it take to receive this revenue following billing?
Identify the highest expense item
Does the highest revenue source cover the cost of the highest expense item?
Financial Position:
Identify one competitor to your organization and if this organization has a higher market share as compared to your organization
Describe one step your organization can take to improve market share.
Explain how financial position will impact the financial decision making process of your organization.
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