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Jim, the radiology department director, believes the annual operating budgeting

ID: 109391 • Letter: J

Question

Jim, the radiology department director, believes the annual operating budgeting process is a tool used to increase his department through the addition of staff and supplies. Susan, the laboratory department director, believes the annual operating budgeting process is a tool used to control costs. Dr. Smith, the emergency department director, considers the budgeting process a nuisance and believes he should simply increase all revenues and expenses by 5% for the coming year to achieve a budget. Whose viewpoint represents the proper objective for the budgeting process?

Dr. Smith's view

Jim's view

Susan's view

None of these is correct.

A.

Dr. Smith's view

B.

Jim's view

C.

Susan's view

D.

None of these is correct.

Explanation / Answer

ANSWER:

GIVEN,

Jim, the radiology department director, believes the annual operating budgeting process is a tool used to increase his department through the addition of staff and supplies.

Susan, the laboratory department director, believes the annual operating budgeting process is a tool used to control costs.

Dr. Smith, the emergency department director, considers the budgeting process a nuisance and believes he should simply increase all revenues and expenses by 5% for the coming year to achieve a budget.

c.SUSAN's viewpoint represents the proper objective for the budgeting process.

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