Determine the revenue variance from Arcadia Hospital’s 2005 budget
To determine the revenue variance from Arcadia Hospital's 2005 budget, you will need to follow these steps:
1. Obtain the actual revenue for the year 2005: This information should be available in the hospital's financial records or accounting system. You can contact the hospital's finance department or review their annual financial statements.
2. Obtain the budgeted revenue for the year 2005: This can be found in Arcadia Hospital's budget for 2005. The budget might be available on their website, or you can reach out to their finance department.
3. Calculate the revenue variance: The revenue variance is the difference between the actual revenue and the budgeted revenue. It represents how much the actual revenue deviates from what was planned in the budget.
Revenue Variance = Actual Revenue - Budgeted Revenue
4. Once you have the actual revenue and budgeted revenue figures, subtract the budgeted revenue from the actual revenue to calculate the revenue variance.
For example, if the actual revenue for 2005 was $5 million and the budgeted revenue was $4.5 million, the revenue variance would be:
Revenue Variance = $5 million - $4.5 million = $500,000
So, the revenue variance for Arcadia Hospital's 2005 budget would be $500,000.