Every month the chief financial officer (CFO) reviews the budget with the hospital's board of directors. The CFO requests a million dollars to purchase a new MRI (magnetic response imaging) unit for the radiology department. Which category best describes this request?

Question

Quizplus · Accepted Answer

1. An MRI machine would be revenue producing.
2. A capital expense is an expense that is above a set dollar amount, such as $10,000, and that must be approved by the board of directors.
3. The cost of this machine is not variable.
4. Allocation of funds is not specific to the type of budgetary expenditure.

Every Month the Chief Financial Officer (CFO) Reviews the Budget