Chapter 18 Budgeting Basics for Nurses

Chapter 18  Budgeting Basics for Nurses

Complete Chapter Questions And Answers
 

Sample Questions

MULTIPLE CHOICE

1. A nurse manager plans the fiscal budget to include salaries for two RNs for two 12-hour shifts with a patient census of 6 in the short-stay observation room. The nurse manager reviews the budget report 3 months later and notes that the salary expenses are higher than was budgeted because of higher-than-planned RN staff salaries. This additional RN staff is necessary to meet patient care needs because the census has remained constant at 10 patients rather than the 6 projected when the budget was developed. The difference between the planned budget and the actual cost is known as:
a.
revenue.
b.
variance.
c.
monitoring.
d.
capital expenditures.

ANS: B
Variance is the difference between the planned budget and actual results; it can be a positive or a negative discrepancy.

DIF: Comprehension REF: p. 316

2. A nursing unit’s census consists primarily of long-term residents with a high risk for falls. To meet new safety regulations, the nurse manager must plan to replace all 50 patient beds with new beds equipped with Fall Watch electronic sensors that will detect when patients get out of bed. The manager will be involved in which type of budgeting to replace the beds?
a.
Fiscal
b.
Labor
c.
Operational
d.
Capital

ANS: D
Capital budgets are concerned with major purchases such as equipment paid for over several years.

DIF: Comprehension REF: pp. 320-321

3. A nurse manager is preparing a budget that does not base annual budgets on the revenue and expenditures of the prior year and has the advantage that outdated information is not integrated into the budget. The manager is using which budget method?
a.
Zero-based
b.
Incremental
c.
Labor
d.
Operational

ANS: A
The zero-based method is based on the assumption of no volume and no resources assigned; it essentially starts each new budget period at zero rather than building from past budgets.

DIF: Comprehension REF: p. 321

4. A nurse on the unit is heard saying, “I am not going to document that I used four catheters to start that IV; it doesn’t matter anyway.” What action can help the staff nurse understand the financial budget goals of the unit?
a.
Have the nurse work in payroll for a week.
b.
Enroll the staff in continuing education units (CEU) for personal finance.
c.
Ask the nurse to represent the unit on the budget planning committee.
d.
Make the nurse responsible for monitoring all disposable equipment and supplies.

ANS: C
Participating on the committee will give the nurse ownership of the unit’s budget and will provide insight into the unit’s budgetary goals.

DIF: Analysis REF: p. 326