Deck 23: Budgeting, Productivity, and Costing Out Nursing

Question 1

Using resources to maximize health benefits while simultaneously using resources to maximize cost-effectiveness is:

A) costing out nursing services.
B) fiscal responsibility.
C) priority nursing management.
D) capital constraint.

Answer 1

fiscal responsibility.

Question 2

A(n) _____ is a written financial plan aimed at controlling the allocation of resources.

Answer 2

budget
A budget is defined as a written financial plan aimed at controlling the allocation of resources. It functions as both a planning instrument and an evaluation tool useful for financial management.

Question 3

The manager of a rural, thriving, nurse-managed clinic is considering purchasing equipment to furnish two additional examination rooms. The resource he must consider is the _____ budget.

A) capital
B) expense
C) operating
D) product line

Answer 3

capital

Question 4

The costs or prices of activities undertaken in the organization's operations are called:

A) budget.
B) income.
C) expenses.
D) revenue.

Question 5

In the past, health care organizations viewed nursing services as primarily a(n):

A) acute care asset.
B) expense.
C) reimbursement tool.
D) revenue generator.

Question 6

The phases of the budget process are: (Select all that apply.)

A) preparation.
B) completing the forms.
C) auditing and monitoring.
D) revision and submission.
E) selection and evaluation.

Question 7

Mary is the manager of the critical care unit. She would like to hire a wound care nurse for the unit. The type of organizational budget Mary would use to ensure she can hire the new nurse is called the _____ budget.

A) capital
B) personnel
C) operating
D) expense

Question 8

Revenues minus expenses equals:

A) cash flow.
B) expense incurred.
C) income.
D) total reimbursement.

Question 9

The relationship between output and the goods and services used to produce them is called:

A) acuity.
B) revenue.
C) variability.
D) productivity.

Question 10

A(n) _____ is the difference between the budgeted and actual amounts.

A) expense
B) margin
C) revenue
D) variance

Question 11

The process of identifying the specific costs related to the delivery of nursing care to each client so that nurses have data to identify the actual amount of services received is:

A) personnel budget development.
B) evaluating budget expenditures.
C) costing out nursing services.
D) strategic financial planning.

Question 12

Janice is going to give her patient a bath. She has the option of using prepackaged bathing wipes or a bath basin and washcloths. She chooses the bath basin and washcloths because she knows their performance is the same but they are less expensive. Janice's choice is an example of:

A) rationing.
B) fiscal responsibility.
C) costing out services.
D) activity-based costing.

Question 13

Staff nurses involvement in budgeting is essential because they:

A) have the final authority on the annual budget.
B) have the ability to contain costs at the unit level.
C) have a unique perspective on the budgetary process.
D) are the largest user of the budgeted funds for the unit.

Question 14

Supply budgets are a major component of the operating budget. Items such as office supplies, intravenous solutions, instruments, linen, gloves, and other personal protective equipment are examples of _____ costs.

A) fixed
B) flexible
C) variable
D) resource

Question 15

The key advantage of activity-based costing is:

A) workload is determined based on the required hours of nursing care.
B) it reflects what it costs to provide services and identifies why costs were incurred.
C) data can be used in constructing a personnel budget because it is linked to the volume indicator of patient days.
D) the judgment of an expert nurse clinician must override an empirical system and be based on patient's needs in real time.

Question 16

A staff nurse's accurate recording of all services and supplies used to provide care to each client in her assignment is necessary for determining calculations used in which of the following budgets?

A) Expense
B) Gross
C) Inpatient
D) Revenue

Question 17

The management team of a large hospital is attempting to identify the specific cost of providing nursing services. This process is known as:

A) costing out services.
B) fee-for-service care provision.
C) priority nursing management.
D) quality versus cost balance.

Question 18

The operating budget covers a specific period, called a _____ year.

A) fiscal
B) budget
C) calendar
D) federal government

Question 19

A budget functions as a:

A) capital constraint.
B) employee management tool.
C) human resource tool.
D) planning instrument.

Question 20

The incorporation of economic evaluation into clinical practice is important to productivity because:

A) rationing must occur.
B) health care resources are limited.
C) providers may not turn away clients.
D) uninsured clients get the same health care as insured clients.

Question 21

A(n) _____ is the difference between the budgeted and the actual amounts.

Question 22

A measure of the severity of illness of an individual patient or the aggregate patient population on a unit is called _____.