Because of crop failures in Europe, American farm equipment manufacturers are gearing up production to meet expected increased demand. The manufacturing facility in Smithville, Georgia, is adding a second shift and hiring new workers. Smithville Community Hospital operates on a calendar-year budget. By midyear, the hospital is seeing a substantial increase in patient visits, and the operating units in the hospital are experiencing needs for higher use of overtime and part-time employees, exceeding budgeted funds. You are the budget manager for Smithville Community Hospital. What budget amendments would you recommend to both hospital management and the board of directors?
Answer)
Here,I would recommend the hospital management and board of directors to increase the wages budget.Along with it I would also recommend them to amend the budget for free supplies like water and other expenses budget like electricity etc.etc. Although other recoverable supplies recover their cost like medicines I would also recommend them to amend that budget also as they are initially incurred by management and their shortage may keep patient life into the trouble.
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