Question 1

When developing a zero-based budget, nurse managers understand

Accepted Answer

A) the previous year's monies are applied to the current one. 
B) all budget needs are justified annually. 
C) no changes to patient care delivery can occur. 
D) it does not reflect actual changes of the unit. 
A) the previous year's monies are applied to the current one. 
B) all budget needs are justified annually. 
C) no changes to patient care delivery can occur. 
D) it does not reflect actual changes of the unit. B

Question 2

When developing an incremental type budget, the nurse manager understands

Accepted Answer

A) yearly budgets are dependent on the previous year's budget.The budget must be recreated every year. 
B) anticipated changes are allowed. 
C) all changes must be justified. 
D) the yearly budget for the upcoming year will be less than for the present year. 
A) yearly budgets are dependent on the previous year's budget.The budget must be recreated every year. 
B) anticipated changes are allowed. 
C) all changes must be justified. 
D) the yearly budget for the upcoming year will be less than for the present year. A

Question 3

The personnel budget is based on the calculations of which factors? (Select all that apply.)

Accepted Answer

A) Average daily census 
B) Patient safety factors 
C) Hours per patient day 
D) Number of staff 
E) Nurse/patient ratios 
A) Average daily census 
B) Patient safety factors 
C) Hours per patient day 
D) Number of staff 
E) Nurse/patient ratios A, C, D

Question 4

Which of the following would explain a nurse manager's use of position control in monitoring the budget?

Accepted Answer

A) Comparison of this year's turnover rate with last year's 
B) Premium pay 
C) Comparison of actual full-time employees and the number that was budgeted 
D) Control of nurse manager to allocate pay raises 
A) Comparison of this year's turnover rate with last year's 
B) Premium pay 
C) Comparison of actual full-time employees and the number that was budgeted 
D) Control of nurse manager to allocate pay raises

Question 5

Support costs must be included in the budget.Which employee position would be included in the support or indirect costs part of the operating budget?

Accepted Answer

A) Waiting room secretary 
B) UAPs 
C) Physical therapists 
D) Case managers 
A) Waiting room secretary 
B) UAPs 
C) Physical therapists 
D) Case managers

Question 6

Indirect costs in a nurse manager's budget would include

Accepted Answer

A) benefits. 
B) expected raises. 
C) shift differential. 
D) travel. 
A) benefits. 
B) expected raises. 
C) shift differential. 
D) travel.

Question 7

A new drug reference book is needed for a unit.The nurse manager would plan to pay for this from which budget?

Accepted Answer

A) Cash budget 
B) Operating budget 
C) Personnel budget 
D) Capital budget 
A) Cash budget 
B) Operating budget 
C) Personnel budget 
D) Capital budget

Question 8

A proactive budget should incorporate which situation?

Accepted Answer

A) Patient acuity changes 
B) Patient/nurse ratio changes 
C) Projection of sick time 
D) Equipment maintenance 
A) Patient acuity changes 
B) Patient/nurse ratio changes 
C) Projection of sick time 
D) Equipment maintenance

Question 9

When assessing the staffing needs, the nurse manager must consider which of the following in addition to the patient care hours?

Accepted Answer

A) Anticipated retirements 
B) Cash budget 
C) Staff mix required 
D) Scheduled breaks 
A) Anticipated retirements 
B) Cash budget 
C) Staff mix required 
D) Scheduled breaks

Question 10

When planning the purchase of new equipment, the nurse manager should include these items into which type of budget?

Accepted Answer

A) Capital budget 
B) Personnel budget 
C) Cash budget 
D) Operating budget 
A) Capital budget 
B) Personnel budget 
C) Cash budget 
D) Operating budget

Question 11

In addition to determining the number of patient care hours needed, the nurse manager must also include which other labor costs?

Accepted Answer

A) Loss of staff positions 
B) Vacations and holiday pay 
C) Breaks 
D) Changes in management 
A) Loss of staff positions 
B) Vacations and holiday pay 
C) Breaks 
D) Changes in management

Question 12

When evaluating the performance of a budget, the nurse manager can use a variance analysis to explain

Accepted Answer

A) an increased cost due to market changes. 
B) a change in availability of materials. 
C) differences between budget and cost. 
D) one-time event. 
A) an increased cost due to market changes. 
B) a change in availability of materials. 
C) differences between budget and cost. 
D) one-time event.

Question 13

Unit yearly budgets may change based on variances.What does the nurse manager understand to be the cause of budget variances?

Accepted Answer

A) A change in patient census 
B) An increase in staffing 
C) Implementation of new responsibilities 
D) New management 
A) A change in patient census 
B) An increase in staffing 
C) Implementation of new responsibilities 
D) New management

Question 14

A positive budget variance can be identified by which situation?

Accepted Answer

A) A decrease in the budgeted expenditures 
B) An increase in the budgeted expenditures 
C) An increase in RN salaries 
D) A decrease in patient ratios 
A) A decrease in the budgeted expenditures 
B) An increase in the budgeted expenditures 
C) An increase in RN salaries 
D) A decrease in patient ratios

Question 15

From which of the following would a nurse manager expect to receive revenue?

Accepted Answer

A) Failure of the nurse to correctly check in 
B) Staff turnover 
C) Unused sick time 
D) Medicare 
A) Failure of the nurse to correctly check in 
B) Staff turnover 
C) Unused sick time 
D) Medicare

Question 16

When using the gathering and planning phase of developing a budget, the nurse manager would expect to find

Accepted Answer

A) financial objectives of the organization. 
B) environmental assessment. 
C) scheduled budget items. 
D) monitoring of progress. 
A) financial objectives of the organization. 
B) environmental assessment. 
C) scheduled budget items. 
D) monitoring of progress.

Question 17

A community health center leases space from the owner of the building.As the manager develops the budget, they understand this to be a fixed cost.From which of the following would the lease payment be paid?

Accepted Answer

A) Operating budget 
B) Personnel budget 
C) Capital budget 
D) Cash budget 
A) Operating budget 
B) Personnel budget 
C) Capital budget 
D) Cash budget

Question 18

To determine staffing needs, the nurse manager needs to

Accepted Answer

A) determine supplies needed. 
B) determine shift differential. 
C) determine the daily census. 
D) determine overtime needed. 
A) determine supplies needed. 
B) determine shift differential. 
C) determine the daily census. 
D) determine overtime needed.

Question 19

A nurse consistently remains past her shift for report or charting.The amount of overtime accumulated is equivalent to a full-time nurse's salary for 1 month.The nurse manager counsels the nurse and emphasizes that one of the responsibilities to the institution is

Accepted Answer

A) quality patient care. 
B) fiscal accountability. 
C) accurate documentation. 
D) accurate medication administration. 
A) quality patient care. 
B) fiscal accountability. 
C) accurate documentation. 
D) accurate medication administration.

Question 20

The nurse manager understands that when there is a negative variance of the budget report, it is necessary to establish the cause.Which of the following might best explain a negative variance?

Accepted Answer

A) Decreased patient acuity 
B) Increase in staff sick days 
C) Increased benefits 
D) Decreased census 
A) Decreased patient acuity 
B) Increase in staff sick days 
C) Increased benefits 
D) Decreased census

Exam 4: Financial Management in Health Care

When developing a zero-based budget, nurse managers understand

When developing an incremental type budget, the nurse manager understands

The personnel budget is based on the calculations of which factors? (Select all that apply.)

Which of the following would explain a nurse manager's use of position control in monitoring the budget?

Support costs must be included in the budget.Which employee position would be included in the support or indirect costs part of the operating budget?

Indirect costs in a nurse manager's budget would include

A new drug reference book is needed for a unit.The nurse manager would plan to pay for this from which budget?

A proactive budget should incorporate which situation?

When assessing the staffing needs, the nurse manager must consider which of the following in addition to the patient care hours?

When planning the purchase of new equipment, the nurse manager should include these items into which type of budget?

In addition to determining the number of patient care hours needed, the nurse manager must also include which other labor costs?

When evaluating the performance of a budget, the nurse manager can use a variance analysis to explain

Unit yearly budgets may change based on variances.What does the nurse manager understand to be the cause of budget variances?

A positive budget variance can be identified by which situation?

From which of the following would a nurse manager expect to receive revenue?

When using the gathering and planning phase of developing a budget, the nurse manager would expect to find

A community health center leases space from the owner of the building.As the manager develops the budget, they understand this to be a fixed cost.From which of the following would the lease payment be paid?

To determine staffing needs, the nurse manager needs to

A nurse consistently remains past her shift for report or charting.The amount of overtime accumulated is equivalent to a full-time nurse's salary for 1 month.The nurse manager counsels the nurse and emphasizes that one of the responsibilities to the institution is

The nurse manager understands that when there is a negative variance of the budget report, it is necessary to establish the cause.Which of the following might best explain a negative variance?

Leadership and Management

Organizational Structure of Health Care

Strategic Management and Planning

Healthcare Regulatory and Certifying Agencies

Organizational Decision Making and Shared Governance

Professional Decision Making and Advocacy

Communication in the Work Environment

Personnel Policies and Programs in the Workplace

Professional Development

Professional Practice and Care Delivery Models and Emerging Practice Models

Staffing and Scheduling

Delegation of Nursing Tasks

Providing Competent Staff

Group Management for Effective Outcomes

Hospital Information Systems

Ethical and Legal Issues in Patient Care

Improving Organizational Performance

Evidence-Based Practice

Monitoring Outcomes and the Use of Data for Improvement

New Graduates: the Immediate Future: Job Interviewing, Nclex, and Continuing Education

Filters