Adding a Retail Pharmacy
A capital expenditure budget is the amount of money dedicated for capital items or permanent assets, such as land, buildings, and/or equipment, that are projected to generate future revenue. A request to add a retail pharmacy in the hospital would require a budget plan prepared for an individual capital expenditure project, and would be expected to generate income upon its completion. If I were assigned to prepare a capital expenditure budget request to add a retail pharmacy in the hospital, I would require the support of the Financial Officer and the Accounting Manager.
The Financial Officer would assist us in aligning capital spending with long term organizational objectives. “With a capital budget in hand, financial managers are asked to evaluate the financial aspects of capital budget requests to propose projects to approve and to allocate funds” (Smith, 2104, sec. 7.5). The Financial Officer can use data-driven processes to help us apply capital investments where they will produce maximum business value.
The Accounting Manager would assist with the pricing of services and other important decision making matters of the pharmacy. “…management accounting uses special techniques and concepts to make accounting data more useful. The techniques usually used include financial planning and analysis, standard costing, budgetary control, marginal costing, project appraisal, control accounting, etc.” (Cristian, 2014). Since accountants deal with the transactions of a business, and are focused on the future, they can prove invaluable in projecting outcomes and preparing budgets.
References
CRISTIAN, D. (2014). THE IMPORTANCE OF MANAGERIAL ACCOUNTING IN MANAGERIAL ACCOUNTING SYSTEM. Analele Universitatii Maritime Constanta,15(21), 173-176.
Smith, D. G. (2014). Introduction to healthcare financial management. San Diego, CA: Bridgepoint Education, Inc. Retrieved from https://content.ashford.edu/books/AUHCA311.14.1/sections/sec7.5
The Financial Officer would assist us in aligning capital spending with long term organizational objectives. “With a capital budget in hand, financial managers are asked to evaluate the financial aspects of capital budget requests to propose projects to approve and to allocate funds” (Smith, 2104, sec. 7.5). The Financial Officer can use data-driven processes to help us apply capital investments where they will produce maximum business value.
The Accounting Manager would assist with the pricing of services and other important decision making matters of the pharmacy. “…management accounting uses special techniques and concepts to make accounting data more useful. The techniques usually used include financial planning and analysis, standard costing, budgetary control, marginal costing, project appraisal, control accounting, etc.” (Cristian, 2014). Since accountants deal with the transactions of a business, and are focused on the future, they can prove invaluable in projecting outcomes and preparing budgets.
References
CRISTIAN, D. (2014). THE IMPORTANCE OF MANAGERIAL ACCOUNTING IN MANAGERIAL ACCOUNTING SYSTEM. Analele Universitatii Maritime Constanta,15(21), 173-176.
Smith, D. G. (2014). Introduction to healthcare financial management. San Diego, CA: Bridgepoint Education, Inc. Retrieved from https://content.ashford.edu/books/AUHCA311.14.1/sections/sec7.5
References: CRISTIAN, D. (2014). THE IMPORTANCE OF MANAGERIAL ACCOUNTING IN MANAGERIAL ACCOUNTING SYSTEM. Analele Universitatii Maritime Constanta,15(21), 173-176. Smith, D. G. (2014). Introduction to healthcare financial management. San Diego, CA: Bridgepoint Education, Inc. Retrieved from https://content.ashford.edu/books/AUHCA311.14.1/sections/sec7.5