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Healthcare budget

The scenario is in an acute care hospital setting:
- What is an operating budget?
- What is a capital budget?
- Why is a capital budget developed separately from the operating budget?
- What is the definition of a capital budget item in a organization?
- An example of a possible capital request in an organization?

References needed

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What is an operating budget?
An operating budget defines a company's estimated revenues and expenses for a set time period, usually 1-year.

What is a capital budget?
A capital budget defines a company's ability to make a large purchase (i.e. property, plant and equipment initial purchase or upgrade). The ...

Solution Summary

Solution is comprised of defining an operating budget and capital budget and answers the question why a capital budget is developed separate from an operating budget. Also defines what a capital budget item in an organization is and provides an example of a possible capital request in an organization.

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