Variable budget: a management tool for laboratory financial planning and control.

There is no exact or perfect method of establishing a variable budgeting system. What needs to be done is to design a system that best fits the needs of your own particular situation. Meet with your supervisory staff. Agree which costs should be considered fixed, which are to be considered step-variable. Once this is accomplished, design your management reports to accommodate the desired results. Certainly, the variable budget concept will provide laboratory management with a more realistic report for cost control and departmental performance analysis.