A Large Hospital Uses Line Item Control of Its Budget

question 35

Multiple Choice

A large hospital uses line item control of its budget. Variance analysis shows that one unit is exceeding its budget for Repairs due to a manufacturing flaw in a commonly used device that is no longer under warranty. The unit manager can ____.

• A) transfer money from the Rental and Leasing account to the Repairs account
• B) approve a budget amendment that increases the Rental account budget
• C) go over budget on Repairs and submit a Variance Report
• D) request a meeting with upper management to change the budget

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