The Nurse Manager Is in the Midst of Creating a Budget

question 11

Multiple Choice

The nurse manager is in the midst of creating a budget for the next year.Which economic information should the nurse keep in mind when preparing this budget?

• A) Resources are scarce.
• B) The need for nurses will increase.
• C) The number of vacant positions for nurses will grow.
• D) There is an increased need for advanced practice nurses.

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Definitions:

Overhead Cost Performance Report

A document that compares the actual overhead costs incurred to the budgeted or standard overhead costs, for the purpose of monitoring and controlling these costs.

Efficiency Variances

Variances that occur when the actual performance deviates from the expected standards, often analyzed in terms of time, cost, and materials.

Budget Variance

The difference between budgeted figures for revenue and expenditure, and the actual amounts realized.

Budgeted Fixed Overhead

The estimated constant costs for a period that do not vary with the level of production or sales, such as rent, salaries, and insurance.