Author Question: A nurse manager approves two staff nurses to attend a national conference. When reviewing the ... (Read 76 times)

jparksx · **on:** Jul 8, 2018

A nurse manager approves two staff nurses to attend a national conference. When reviewing the budget, the nurse manager looks at which line item?

a. Cash budget
b. Capital budget
c. Operating budget
d. Supply and expense budget

Question 2

After reviewing her monthly budget report, the nurse manager sees that she has a negative variance, which prompts her to change the staffing schedule. A negative or unfavorable variance in a monthly expense report may result from:

a. Overestimation of inflation.
b. Higher than expected client acuity.
c. Net revenue exceeding net expenses.
d. Not replacing staff who called in sick.

shaquita · **Reply #1 on:** Jul 8, 2018

Answer to Question 1

ANS: C
The operating budget includes a personnel budget, which takes into account productive and nonproductive paid work hours. Education hours are covered under nonproductive paid work hours in the operating budget.

Answer to Question 2

ANS: B
Variance reflects the difference between what was projected and the actual performance in a budget. When the variance is negative or unfavorable, the amount spent is more than what was budgeted (expenses exceed revenue); this may be a result of higher acuity. To help managers interpret and use variance information better, some institutions use flexible budgets that automatically account for census variances.