1. Review table 14-5 (p.152) operating room operating data and choose 3 expense items that look interesting to you. Take special note to the expenses that have the most % change.

a. Complete and show the math (even though it is completed for you) the common sizing (vertical) % of all three you chose.

b. Complete and show the math (even though it is completed for you) the trend analysis (horizontal) % of all three you chose

c. Develop some questions you would want to ask of why such a variance between comparative expenses from current year and prior year ( remember you are not the accountant or the manager to solve the issue but the investigator to control these management issues).

2. Are you or your immediate supervisor involved with staffing decisions? If so, are you aware of how staffing forecasts are prepared in your organization? Describe an example

3. As a manager, you must either review or prepare required data, your responsibility is to recall and apply the elements of consistency. Why?

4. If you reviewed a budget at your workplace do you think the major increases and decreases could be explained? Why or why not?

152 Charten 14 Trend Analysis, Common Sizing, and Forecasted Data Table 14-5 Vertical and Horizontal Analysis for the Operating Pioom IMPORTANCE OF FORECASTS The dictionary defines "to forecast" as "to calculate or predict some future event or condition, usally as a result of study and analysis of available pertinent data. 1 From the manager's viewpoint, forecasted data are information used for purposes of planning for the future. Forecasting, to some degree or another, is often required when producing budgets. (Budgets are the subject of two of the following chapters.) It is pretty simple today to create "what if" scenarios on the computer. But the important thing for managers to remember is that assumptions directly affect the results of forecasts. 152 Charten 14 Trend Analysis, Common Sizing, and Forecasted Data Table 14-5 Vertical and Horizontal Analysis for the Operating Pioom IMPORTANCE OF FORECASTS The dictionary defines "to forecast" as "to calculate or predict some future event or condition, usally as a result of study and analysis of available pertinent data. 1 From the manager's viewpoint, forecasted data are information used for purposes of planning for the future. Forecasting, to some degree or another, is often required when producing budgets. (Budgets are the subject of two of the following chapters.) It is pretty simple today to create "what if" scenarios on the computer. But the important thing for managers to remember is that assumptions directly affect the results of forecasts