A Hospital Has Used Capital Funds to Purchase a New

question 13

Multiple Choice

A hospital has used capital funds to purchase a new piece of diagnostic equipment. The hospital's chief financial officer (CFO) says, "The cost of this equipment will be expensed out across all units that use it." How should the nurse manager interpret this statement?

• A) The equipment is jointly owned by all units that use it.
• B) If clients on the manager's unit require the use of this equipment, a portion of the cost will be charged to the unit.
• C) The equipment will be rented to the units for use.
• D) The nurse manager will ask physicians to refrain from using the equipment.

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Definitions:

Interest Rate

The part of the loan amount that is levied as interest by the lender on the borrower, often presented as an annual percentage rate of the loan's total value.

Rate of Return

The net gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Interest Rate

The fraction of a monetary amount imposed for its borrowing, often stated in terms of an annual percentage rate.

Investment

The allocation of resources, often financial, into a venture or asset, with the expectation of generating income or profit.