Unit Yearly Budgets May Change Based on Variances

question 13

Multiple Choice

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

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Definitions:

Setting Goals

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives that guide individuals or organizations.

Managerial Accounting Reports

Internal financial reports that provide managers with the necessary information to make informed business decisions, typically focused on future profitability and efficiency.

Subunits

Subunits refer to smaller, separately identifiable parts of a larger organization, which can be departments, divisions, or subsidiaries, each responsible for distinct functions or regions.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.