Cost studies for EXISTING laboratory tests are done for all the following reasons EXCEPT to:Understand and monitor the cost of serviceMonitor trends to forecast budget needsSet fees for clients/insurance providersSelect the most appropriate testUse as a metric for process improvement

A typical Laboratory operating budget includes the following elements associated with it's operations:Inpatient Testing income (revenue)Outpatient Testing income (revenue)Salary expensesSupply expensesAll the above

Most laboratories have two types of budgets - Operating Budget and Capital Budget. All the following are true for an OPERATING budget EXCEPT:There is typically one for each laboratory department in a larger health system.This budget monitors monthly income and expenses.This budget tracks major equipment purchases and other one time expenditures.Actual dollars minus budgeted dollars is called variance.A negative variance between actual and budgeted performance must be reviewed for any further action

The typical goals of laboratory research and/or process improvement projects are:Decrease cost and/or increase qualityDrive for improved patient safetyValidate a new test methodologyEducation or information sharing with professional peers, clinical staff and/or patient education

Direct costs are defined as the expenses associated with the output of the operation. Examples would include:Hands-on labor to perform the necessary patient testing including test calibration and QCReagents and consumable supplies required for patient testing and test calibration/QCEquipment and instrument purchase or leaseA and BA, B and C

features of cost audit