Deck 14: Financial Management

Question 1

To determine staffing needs,the nurse manager needs to:

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

Answer 1

Determine the daily census.

Question 2

A proactive budget should incorporate which situation?

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

Answer 2

Projection of sick time

Question 3

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?

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

Answer 3

Operating budget

Question 4

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?

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

Question 5

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

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

Question 6

A positive budget variance can be identified by which situation?

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 7

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

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 8

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

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

Question 9

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

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

Question 10

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

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

Question 11

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

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 12

When developing a zero-based budget,nurse managers understand:

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.

Question 13

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?

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

Question 14

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

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

Question 15

When developing an incremental type budget,the nurse manager understands:

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.

Question 16

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

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

Question 17

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:

A)Quality patient care.
B)Fiscal accountability.
C)Accurate documentation.
D)Accurate medication administration.

Question 18

Indirect costs in a nurse manager's budget would include:

A)Benefits.
B)Expected raises.
C)Shift differential.
D)Travel.

Question 19

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

A)Financial objectives of the organization.
B)Environmental assessment.
C)Scheduled budget items.
D)Monitoring of progress.

Question 20

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

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