The nurse manager is reviewing the previous month's budget and notes a favorable efficiency variance of the full-time equivalents (FTEs). Which options may be reasons for this favorable variance? Note: Credit will be given only if all correct choices and no incorrect choices are selected. Select all that apply.

Question

Quizplus · Accepted Answer

1. Greater client acuity than allowed for in the budget would likely result in an unfavorable efficiency variance.
2. Using more resources than the budget allows would result in an unfavorable efficiency variance.
3. Understaffing the unit would mean fewer nursing salary hours. This would result in a favorable efficiency variance but would not be a good long-term plan for quality of care.
4. If client acuity is lower, fewer staff members are needed. This would result in a favorable efficiency variance.
5. If agency nurses were used to supplement staff, the efficiency variance would be unfavorable.

The Nurse Manager Is Reviewing the Previous Month's Budget and Notes