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AHA Certified Health Care Facility Manager (CHFM) CHFM Question # 21 Topic 3 Discussion

AHA Certified Health Care Facility Manager (CHFM) CHFM Question # 21 Topic 3 Discussion

CHFM Exam Topic 3 Question 21 Discussion:
Question #: 21
Topic #: 3

A facilities department's annual expense budget is $5,000,000. The actual expenses for the first 4 months were $500,000, $650,000, $700,000, and $450,000. What is the monthly spending average required to maintain the original annual budget expectations?


A.

$337,500


B.

$350,000


C.

$416,667


D.

$500,000

Step-by-Step Calculation:

Total spent first 4 months = 500,000 + 650,000 + 700,000 + 450,000 = $2,300,000.

Remaining budget = $5,000,000 – $2,300,000 = $2,700,000.

Remaining months = 12 – 4 = 8 months.

Required monthly average = $2,700,000 ÷ 8 = $337,500.


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