Management, budgeting

Question 1

Capital budgets (what they are)

Answer 1

Funds used to purchase long term investments

Question 2

Budget variances (what’s it mean)

Answer 2

Process by which deviations from budgeted amounts are examined by comparison of actual performance results versus expected, or budgeted, performance

Question 3

Nurse managers job in regard to the budget

Answer 3

• Number of staff working at one time

* Staff mix

Question 4

What does nurse manager do with capital budget or variance

Answer 4

• Evaluates quantitative vs. qualitative basis

* Decides what to purchase?

Question 5

Approach of developing budgets

Answer 5

1. ) Top down
2. ) Incremental
3. ) Zero based budgeting

Question 6

Top down

Answer 6

Upper management sets budget goals and imposes those goals on the rest of the population

Question 7

Incremental

Answer 7

Used for budgeting method, simple, forward, trend of current or recent performance with adjustments for future growth or decline in revenues or expenses

Question 8

Zero based budgeting

Answer 8

All expenses must be justified for each new period

• Analyzed for needs and costs