A nurse manager plans the fiscal budget to include salaries for two RNs for two 12-hour shifts with a patient census of 6 in the short-stay observation room. The nurse manager reviews the budget report 3 months later and notes that the salary expenses are higher than was budgeted because of higher-than-planned RN staff salaries. This additional RN staff is necessary to meet patient care needs because the census has remained constant at 10 patients rather than the 6 projected when the budget was developed. The difference between the planned budget and the actual cost is known as:
A) revenue.
B) variance.
C) monitoring.
D) capital expenditures.

Question

Quizplus · Accepted Answer

Variance is the difference between the planned budget and actual results; it can be a positive or a negative discrepancy.

A Nurse Manager Plans the Fiscal Budget to Include Salaries