Question 1

Which of these terms refers to a report that documents and explains when a unit deviates from the approved budget?&#10;A) monthly report&#10;B) budget report&#10;C) variance report&#10;D) cost centre report

Accepted Answer

RAT: A variance is the difference between what was budgeted and the actual result.Managers may be required to complete a variance report when changes occur that impact on the unit's budget,such as increased or decreased patient volumes or increased costs for supplies.The variance report helps to identify which categories in the budget are out of line and the corrective action that is needed.Variance reports may be posted so all staff members are made aware and can participate in the required actions.

Question 2

What is the term for the number and type of staff needed for a procedure or to care for a fixed number of clients?&#10;A) staffing model&#10;B) direct patient preparation&#10;C) pre-procedure care&#10;D) post-procedure care

Accepted Answer

RAT: A staffing model outlines the number and type of staff required for a procedure or to provide care for a predetermined number of patients.Staffing models are based on a primary statistic such as procedures or patients and are helpful in analyzing productivity.

Question 3

Once you have prepared your program or departmental budget,who will have the responsibility for a final decision regarding acceptance of the budget?&#10;A) department managers&#10;B) VP Nursing&#10;C) finance and operations senior management&#10;D) Minister of Health

Accepted Answer

RAT: Once developed,budgets are submitted for review and approval.In most facilities,senior management representing finance and operations are responsible for reviewing and approving departmental or unit budgets and for ensuring that they work with the overall organizational budget.

Question 4

Who is responsible for controlling a budget?&#10;A) Chief Nursing Officer&#10;B) finance officer&#10;C) accountants&#10;D) unit or department manager

Accepted Answer

RAT: Control of a unit or department budget is one of the main responsibilities of the unit or department manager.They should be monitoring the budget on a monthly basis to ensure that costs and revenue are balanced and that productivity and standards are maintained.

Question 5

Which of these documentation tools would you use to provide a snapshot of information and activity at a specific time?&#10;A) strategic plan&#10;B) variance report&#10;C) balanced budget&#10;D) balanced scorecard

Accepted Answer

RAT: A balanced scorecard is a documentation tool that provides a snapshot of information about performance and activity at a particular time.Balanced scorecards may be based on an organization's finances,customer satisfaction and services,operating efficiency,or learning and growth.

Question 6

What is the usual period for which an operating budget is developed?&#10;A) 1 year&#10;B) 3 years&#10;C) 5 years&#10;D) 10 years

Accepted Answer

RAT: A budget is typically developed for a 12-month period.The yearly cycle will be based on a fiscal year that is specified by the province or territory,often April 1 to March 31.Shorter or longer term budgets may be used by some agencies,depending on their organization's planning process.

Question 7

In terms of the budget,which category would include a donation coming to an organization?&#10;A) profit&#10;B) revenue&#10;C) dashboard&#10;D) variance

Accepted Answer

RAT: Revenue is income generated through a variety of means-donations,billable patient services,and investments.

Question 8

Which type of budget accounts for both revenue and expenditures associated with the day-to-day functions of a department or organization?&#10;A) an operating budget&#10;B) a capital budget&#10;C) a construction budget&#10;D) an accounting budget

Accepted Answer

RAT: An operational budget is a financial tool that outlines the expected revenue and expenses for a particular unit,department,or organization over a specified period.

Question 9

Which of these business aspects refers to the recording and reporting of financial transactions and data?&#10;A) operating plans&#10;B) accounting&#10;C) financial indicators&#10;D) budget development

Accepted Answer

RAT: The processes of accounting involve recording and reporting financial transactions and related data in order to manage and control the operating budget.Accounting also helps to identify problems in financial performance.

Question 10

Which of these terms refers to a budget that indicates designated funds for the purchase of major new equipment?&#10;A) unit budget&#10;B) construction budget&#10;C) capital budget&#10;D) equipment budget

Accepted Answer

RAT: The purchase of major new or replacement equipment is covered within the capital budget.Health care agencies need to budget for capital costs in order to keep up with technological advances in patient care,to replace antiquated equipment that is no longer cost-efficient to operate and repair,or to replace equipment that no longer meets regulatory standards.

Question 11

What is the title of the body that accredits health facilities in Canada?&#10;A) Accreditation Canada (AC)&#10;B) Health Services Standards Organization (HSSO)&#10;C) Canadian Accreditation Service (CSA)&#10;D) Canadian Council on Health Services Accreditation (CCHSA)

Accepted Answer

The answer of What is the title of the body...

Question 12

What percent of operating costs is made up of salaries and benefits?&#10;A) 90 percent&#10;B) 80 percent&#10;C) 50 percent&#10;D) 30 percent

Accepted Answer

The answer of What percent of operating costs is made...

Question 13

What are the resources used to deliver services collectively referred to as?&#10;A) expenditures&#10;B) labour costs&#10;C) supplies&#10;D) payments

Accepted Answer

The answer of What are the resources used to deliver...

Question 14

Which of these categories includes investments and billable client services?&#10;A) reimbursement&#10;B) expenditures&#10;C) revenue&#10;D) line item

Accepted Answer

The answer of Which of these categories includes investments and...

Question 15

Which kind of budget takes into account demographics,regulations,and strategic plans?&#10;A) a capital budget&#10;B) an annual budget&#10;C) a balanced budget&#10;D) a project budget

Accepted Answer

The answer of Which kind of budget takes into account...

Question 16

Which of the following are considerations in determining a capital expense?&#10;A) effectiveness and equipment life expectancy&#10;B) cost and clinical application&#10;C) cost and equipment life expectancy&#10;D) number of clients to be served and cost

Accepted Answer

The answer of Which of the following are considerations in...

Question 17

What type of budget includes building permits,materials,and labour costs?&#10;A) capital budget&#10;B) construction budget&#10;C) balanced budget&#10;D) operating budget

Accepted Answer

The answer of What type of budget includes building permits,materials,and...

Question 18

In relation to budget preparation,which of these terms refers to the units or subsections within a facility?&#10;A) financial unit&#10;B) cost sections&#10;C) compartments&#10;D) cost centres

Accepted Answer

The answer of In relation to budget preparation,which of these...

Question 19

Which of these factors typically serves as the baseline for preparation of an operating budget?&#10;A) government funding&#10;B) past performance&#10;C) the strategic plan&#10;D) increased demand

Accepted Answer

The answer of Which of these factors typically serves as...

Question 20

What is the process that details the cost of every supply item and the frequency of use?&#10;A) accounting&#10;B) zero-based budgeting&#10;C) operating budget&#10;D) capital budget

Accepted Answer

The answer of What is the process that details the...

Deck 10: Budget Concepts for Client Care