Certified Nurse Manager and Leader (CNML)EXAM
–QUESTIONS AND ANSWERS | VERIFIED AND WELL
DETAILED ANSWERS | PLUS RATIONALES |
GUARANTEED PASS | LATEST EXAM UPDATE
Domain 1: Financial Management
,1. A nurse manager is preparing the annual budget. Which budget item is considered a variable cost?
- A) Building mortgage
- B) Nurse manager salary
- C) Medical-surgical supplies
- D) Equipment depreciation
Answer: C) Medical-surgical supplies
Rationale: Variable costs fluctuate with patient volume and service utilization. Medical-surgical supplies increase
as patient census rises and decrease when it falls. The building mortgage, manager's salary, and equipment
depreciation are fixed costs that remain constant regardless of patient volume.
2. When calculating a full-time equivalent (FTE) for a unit that requires 24-hour coverage with one staff member,
how many FTEs are needed?
- A) 3.5 FTEs
- B) 4.2 FTEs
- C) 5.6 FTEs
- D) 2.8 FTEs
,Answer: B) 4.2 FTEs
Rationale: One FTE works 2,080 hours annually (40 hours/week x 52 weeks). To provide 24-hour coverage for
365 days, you need 8,760 hours (24 hrs x 365 days). To account for a typical 2-week vacation, sick time, and
holidays, a relief factor is added. The standard calculation for 24/7 coverage per position is 4.2 FTEs, which
provides the core staff plus relief for days off.
3. A unit's nursing care hours per patient day (NHPPD) is budgeted at 9.5. The average daily census is 28
patients. What is the total number of nursing care hours needed for a 24-hour period?
- A) 133 hours
- B) 266 hours
- C) 294 hours
- D) 380 hours
Answer: B) 266 hours
Rationale: To calculate total nursing hours, multiply the NHPPD by the average daily census. 9.5 hours x 28
patients = 266 nursing care hours needed in a 24-hour period.
4. A nurse manager is analyzing a variance report that shows a negative volume variance. What is the most
likely cause?
- A) A sudden increase in the price of IV supplies
, - B) A lower-than-expected patient census
- C) A higher-than-budgeted nursing skill mix
- D) Unplanned overtime hours
Answer: B) A lower-than-expected patient census
Rationale: A volume variance reflects a difference between budgeted and actual patient volumes. A negative
volume variance means the actual patient days or visits were lower than projected, leading to reduced revenue
or reimbursements. The other options represent price, efficiency, or rate variances.
5. The nurse manager is implementing a zero-based budgeting approach for the first time. What is the
foundational principle of this method?
- A) Using the previous year's budget as a starting point
- B) Justifying every expense from a zero base for each new period
- C) Adjusting the budget based on changes in patient volume
- D) Linking the budget directly to a specific program or service line
Answer: B) Justifying every expense from a zero base for each new period
–QUESTIONS AND ANSWERS | VERIFIED AND WELL
DETAILED ANSWERS | PLUS RATIONALES |
GUARANTEED PASS | LATEST EXAM UPDATE
Domain 1: Financial Management
,1. A nurse manager is preparing the annual budget. Which budget item is considered a variable cost?
- A) Building mortgage
- B) Nurse manager salary
- C) Medical-surgical supplies
- D) Equipment depreciation
Answer: C) Medical-surgical supplies
Rationale: Variable costs fluctuate with patient volume and service utilization. Medical-surgical supplies increase
as patient census rises and decrease when it falls. The building mortgage, manager's salary, and equipment
depreciation are fixed costs that remain constant regardless of patient volume.
2. When calculating a full-time equivalent (FTE) for a unit that requires 24-hour coverage with one staff member,
how many FTEs are needed?
- A) 3.5 FTEs
- B) 4.2 FTEs
- C) 5.6 FTEs
- D) 2.8 FTEs
,Answer: B) 4.2 FTEs
Rationale: One FTE works 2,080 hours annually (40 hours/week x 52 weeks). To provide 24-hour coverage for
365 days, you need 8,760 hours (24 hrs x 365 days). To account for a typical 2-week vacation, sick time, and
holidays, a relief factor is added. The standard calculation for 24/7 coverage per position is 4.2 FTEs, which
provides the core staff plus relief for days off.
3. A unit's nursing care hours per patient day (NHPPD) is budgeted at 9.5. The average daily census is 28
patients. What is the total number of nursing care hours needed for a 24-hour period?
- A) 133 hours
- B) 266 hours
- C) 294 hours
- D) 380 hours
Answer: B) 266 hours
Rationale: To calculate total nursing hours, multiply the NHPPD by the average daily census. 9.5 hours x 28
patients = 266 nursing care hours needed in a 24-hour period.
4. A nurse manager is analyzing a variance report that shows a negative volume variance. What is the most
likely cause?
- A) A sudden increase in the price of IV supplies
, - B) A lower-than-expected patient census
- C) A higher-than-budgeted nursing skill mix
- D) Unplanned overtime hours
Answer: B) A lower-than-expected patient census
Rationale: A volume variance reflects a difference between budgeted and actual patient volumes. A negative
volume variance means the actual patient days or visits were lower than projected, leading to reduced revenue
or reimbursements. The other options represent price, efficiency, or rate variances.
5. The nurse manager is implementing a zero-based budgeting approach for the first time. What is the
foundational principle of this method?
- A) Using the previous year's budget as a starting point
- B) Justifying every expense from a zero base for each new period
- C) Adjusting the budget based on changes in patient volume
- D) Linking the budget directly to a specific program or service line
Answer: B) Justifying every expense from a zero base for each new period
