Analyze the Basics of Financial Principles

You are the chief financial officer (CFO) for an organization and need to discuss with fellow C-suite executives that cost cutting is not the only answer to profitability. Prepare for the next manager’s meeting by responding to the following prompts:

Explain how a capital budget and a return on investment contribute to sustainable growth.
Clarify the role that risk analysis plays during capital investment decision making.
Provide 1 reference that discusses cost containment and patient care.

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Create a PowerPoint presentation with speaker notes to educate others regarding the development of an operational budget and a capital budget. Be sure to include the following:

Provide the process for developing an operational budget.
Provide the process for developing a capital budget.
Differentiate between the operational and capital budgets.
Explain how the capital budget is required for strategic management.

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