Practice Quiz

Nurse Manager Exam #1: Financial Management - Question List

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21. The budget's purpose is to:
  1. Allow management to project action plans and their economic impact on the future so that objectives of the organization are coordinated and met
  2. Allow floor staff to provide anticipated patent care
  3. Hire ancillary employees while controlling work hours
  4. Provide a line-item monetary profit / loss projection
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22. Controlling is the process of comparing actual results projected in the budget. Two techniques for controlling budgetary performance are:
  1. Variance analysis and position control
  2. Profit and loss analysis
  3. Real expenditures and forecasted expenditures
  4. Cost ratio and overrun expenditures
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23. Budgets may be developed in various formats. An incremental budget is:
  1. A line-item budget
  2. A cost variance budget
  3. A zero-based budget
  4. An operational budget
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24. The advantage of an incremental budget is:
  1. Line-item accountability
  2. Simplicity
  3. Easily understood
  4. Methodology
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25. A zero-based budget requires nurse managers to:
  1. Provide full accountability
  2. Cut floor staff
  3. Justify all activities and programs as if they were being initiated for the first time
  4. Cut expenditures as if a new unit were in start-up
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