Author Question: The Intensive Care Unit nurse manager is reviewing the current budget, and is attempting to ... (Read 107 times)

mmm · **on:** Jul 8, 2018

The Intensive Care Unit nurse manager is reviewing the current budget, and is attempting to anticipate variances. Which of the following could result in a cost variance?

1. The nurses are lobbying for a 4 increase in their wages from last year.
2. The organization was recently notified that the cost of tracheal suction kits will increase by 7.
3. The hospital is taking steps to move from a level II trauma center to a level I trauma center.
4. The Surgical Department is performing fewer open heart surgeries after a cardiac surgeon moved away from the area.

Question 2

The Emergency Department nurse manager is monitoring the budget. Which of the following pieces of information might have the most impact on the budget?

1. There are 14 full-time registered nurses, one patient care assistant, and two secretaries employed on this unit.
2. The nurse manager recently purchased a fax machine and a copy machine, and has requested a new bariatric bed for the unit.
3. The supplier of dressing materials recently increased its prices by 2.
4. The nurse manager has requested three new wheelchairs and an ultrasound bladder-scanning machine.

Ashley I · **Reply #1 on:** Jul 8, 2018

Answer to Question 1

Answer: 1

Rationale: There are four types of variances: mix variance, volume variance, cost variance, and price variance. A cost variance occurs when labor rates increase or decrease. A price variance occurs when the actual amount of money paid for a product or service varies from the projected expense. When the price to buy a tracheal suction kit increased, it produced a price variance. A mix variance or volume variance can occur as a result of a change in the type of clients the unit serves. Volume variances typically occur based on a change in a specific type of utilization rate of some service.

Answer to Question 2

Answer: 1

Rationale: The personnel budget is the largest piece of the budget. The nurse manager must examine trends related to staffing and client acuity levels to create this piece of the operating budget accurately. The capital budget is used to purchase more expensive items that will not need to be purchased year after year. These items include fax machines, copiers, beds, wheelchairs, and specialized equipment for use in the unit. The operating budget is used to purchase supplies that are used by staff or clients frequently and that must be replenished often.