Chapter 14 Effective Leadership and Management in Nursing 8th Edition

Chapter 14  Effective Leadership and Management in Nursing 8th Edition

Complete Chapter Questions And Answers
 

Sample Questions

Question 1
Type: MCSA
The nurse manager tells the staff that this year’s budget numbers will not change, even if census drops over the rest of the year. How should the staff interpret this information?
1. The budget is a fixed one.
2. The hospital uses incremental budgets.
3. The hospital uses a variable budget.
4. The hospital starts the budgeting process with a zero-based budget.
Correct Answer: 1
Rationale 1: A fixed budget is one in which budgeted amounts are set regardless of changes that occur during the year, such as patient volume or program activities.
Rationale 2: An incremental or line-by-line budget lists each expense item or category on a separate expense line. It is not possible to tell from this description if the budget is incremental.
Rationale 3: A variable budget is developed with the understanding that adjustments to the budget may be made during the year based on changes in revenue, patient census, utilization of supplies, and other expenses.
Rationale 4: A zero-based budget assumes the base for projecting next year’s budget is zero. It is not possible to tell if the budget being described is a zero-based budget.
Global Rationale:

Cognitive Level: Applying
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Planning
Learning Outcome: 14-2: Differentiate among types of budgets.

Question 2
Type: MCSA
The nurse manager identified that the census was higher than anticipated and the client acuity level was also high; however, there were fewer nursing hours paid. This variance is an example of which budgetary variance?
1. Efficiency
2. Nonsalary expenditure
3. Rate
4. Volume
Correct Answer: 1
Rationale 1: Efficiency variance is a reflection of the difference between budgeted and actual nursing care hours provided.
Rationale 2: Nonsalary expenditure variance is a deviation from the budget as a result of changes in client volume, supply quantities, or prices paid.
Rationale 3: Rate variance is the difference between budgeted and actual hourly rates paid.
Rationale 4: Volume variances are the differences in the budget as a result of increases or decreases in patient volume.
Global Rationale:

Cognitive Level: Applying
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Planning
Learning Outcome: 14-4: Explain how to determine budget variance.

Question 3
Type: MCSA
As a member of the budgeting committee, the nurse manager reviews the salaries for file clerks in the accounting department. These salaries should be included in which budget item?
1. The fixed cost
2. The variable cost
3. The indirect cost
4. The direct cost
Correct Answer: 3
Rationale 1: Fixed costs are costs that will remain the same for the budget period regardless of the activity level of the organization.
Rationale 2: Variable costs depend on and change in direct proportion to client volume and acuity.
Rationale 3: Indirect costs are expenditures that are necessary but do not affect client care directly.
Rationale 4: Direct costs are expenses that directly affect client care such as nursing personnel who provide hands-on client care.
Global Rationale:

Cognitive Level: Applying
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Planning
Learning Outcome: 14-5: Describe how staff affect budgetary performance.

Question 4
Type: FIB
The nurse has received a commendable progress evaluation and will receive a 3 percent merit raise. The base salary for an RN is $48,000. Based on this information, the new projected base salary for this RN will be $_____.
Standard Text:
Correct Answer: 49,440
Rationale : If a 3 percent merit raise is projected and the base salary for an RN is $48,000, then the new base becomes $49,440. $48,000 multiplied by 0.03 equals $1,440. Add $1,440 to $48,000 to determine the new base salary.
Global Rationale:

Cognitive Level: Analyzing
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Implementation
Learning Outcome: 14-5: Describe how staff affect budgetary performance.