Deck 11: Budget Concepts for Client Care

Question 1

Which of these factors serves typically as the baseline for preparation of an operating budget?

A) government funding
B) past performance
C) strategic plans
D) increased demand

Answer 1

past performance

Question 2

Which of these categories includes investments and billable client services?

A) reimbursement
B) expenditures
C) revenue
D) line item

Answer 2

revenue

Question 3

Who is responsible for controlling a budget?

A) Chief Nursing Officer
B) Finance Officer
C) accountants
D) unit or department manager

Answer 3

unit or department manager

Question 4

What is the collective term for the resources used to deliver services?

A) expenditures
B) labour costs
C) supplies
D) payments

Question 5

In relation to budget preparation, which one of these terms refers to the units or subsections within a facility?

A) financial unit
B) cost sections
C) compartments
D) cost centres

Question 6

What is the title of the body that accredits health facilities in Canada?

A) Accreditation Canada (AC)
B) Health Services Standards Organization (HSSO)
C) Canadian Accreditation Service (CSA)
D) Canadian Council on Health Services Accreditation (CCHSA)

Question 7

Which of these business aspects refers to the recording and reporting of financial transactions and data?

A) operating plans
B) accounting
C) financial indicators
D) budget development

Question 8

Which one of the following documentation tools should you use to provide a snapshot of information and activity at a specific time?

A) strategic plan
B) variance report
C) balanced budget
D) balanced scorecard

Question 9

What is the term for the number and type of personnel needed for a procedure or to care for a fixed number of clients?

A) staffing model
B) direct patient preparation
C) pre-procedure care
D) post-procedure care

Question 10

The yearly cycle of a twelve- (12-) month budget is based on a fiscal year as determined by the province or territorial government.

Question 11

What percentage of operating costs is made up of salaries and benefits?

A) 90 percent
B) 80 percent
C) 50 percent
D) 30 percent

Question 12

What type of budget includes items such as building permits, materials, and labour costs?

A) capital budget
B) construction budget
C) balanced budget
D) operating budget

Question 13

Which one of these terms refers to a report that documents and explains when a unit deviates from the approved budget?

A) monthly report
B) budget report
C) variance report
D) cost centre report

Question 14

Which kind of budget takes into account demographics, regulations, and strategic plans?

A) a capital budget
B) an annual budget
C) a balanced budget
D) a project budget

Question 15

Which one of the following pairs of terms lists considerations in determining a capital expense?

A) effectiveness and equipment life expectancy
B) cost and clinical application
C) cost and equipment life expectancy
D) number of clients to be served and cost

Question 16

Which type of budget accounts for both revenue and expenditures associated with the day-to-day functions of a department or organization?

A) an operating budget
B) a capital budget
C) a construction budget
D) an accounting budget

Question 17

Which one of these terms names a budget that indicates funds designated for the purchase of major new equipment?

A) unit budget
B) construction budget
C) capital budget
D) equipment budget

Question 18

Which of these terms is the process that details the cost of every supply item and the frequency of its use?

A) accounting
B) zero-based budgeting
C) operating budget
D) capital budget

Question 19

Six (6) months of time is generally devoted to preparing and developing an operating budget.

Question 20

What is the usual period for which an operating budget is developed?

A) 1 year
B) 3 years
C) 5 years
D) 10 years

Question 21

Operating budgets account for income and expenses associated with day-to-day activities. Identify examples of some of the expenses that may be incurred. (Select all that apply.)

A) equipment expenses
B) supplies expenses
C) staffing expenses
D) capital expenses

Question 22

Identify budget expenses that would be related to the construction budget.

Question 23

Identify budget expenses that would be related to the operating budget.

Question 24

The nurse manager has created a list of to-do's and things she will need for the new unit that is being built. On a piece of paper, she has plotted out the following information in a rough draft: New unit: supplies, labour, equipment, inspection, building permits. Also included in this list is a list of new equipment needed for the nurses, including updating equipment needs on the floor. The cost of the equipment expenses for the nurses totalled $2,000.00.
Budgets have to be made. Looking at the above information, the nurse knows that the unit will have to create two budgets, and she identifies them as

A) capital and operating budgets.
B) capital and construction budgets.
C) operating and construction budgets.
D) construction and scorecard budgets.

Question 25

In terms of the budget, which category would include a donation coming to an organization?

A) profit
B) revenue
C) dashboard
D) variance
Indicate one or more answer choices that best complete the statement or answer the question.

Question 26

Identify budget expenses that would be related to the capital budget.

Question 27

As a new nurse manager on the floor, you have been given an annual budget and you must review it. What types of budgets would you expect to see on that annual budget?

A) operating, capital, and construction budgets
B) opening, closing, and building budgets
C) weekly and monthly budgets
D) monthly budgets

Question 28

Once you have prepared your program or departmental budget, who will have the responsibility for a final decision regarding acceptance of the budget?

A) department managers
B) VP Nursing
C) finance and operations senior management
D) Minister of Health