FINANCIAL MANAGEMENT FOR NURSE
MANAGERS LEGER KEY CONCEPTS AND
PRACTICE QUESTIONS
◉ provides formal, quantitative expression of management's plans &
intentions, or expectations, and actions to control results.
Answer: Budget
◉ Primary purpose of a budget.
Answer: to control cost
◉ Budget is critical to an organization's survival.
Answer: b/c of relatively low reimbursement for services and high
expense of supplies & equipment
◉ 3 primary objectives of a budget.
Answer: 1. to establish an annual and monthly budget
2. to identify and analyze actual experience compared to the budget
plan
3. to accurately report all financial and statistical data
◉ A BUDGET QUANTIFIES.
, Answer: THE STRATEGIC GOALS OF THE ORGANIZATION
◉ overall plan for future operations expressed in expense dollars
and revenue dollars.
Answer: Operating budget
◉ Nursing salaries are a part of the.
Answer: operating budget
◉ budget for capital or investment, expenditures such as the
purchase of new equipment, the construction of new facilities, items
over a certain amount, *usually $1000*.
Answer: Capital budget
◉ item identification, justification for purchase, priority level, &
bids.
Answer: Components of a capital budget
◉ estimates future or tracks cash receipts and payments that are
tabulated to demonstrate the forecasted cash balance.
Answer: Cash budget
◉ Patient deductibles and copayments are included in.
MANAGERS LEGER KEY CONCEPTS AND
PRACTICE QUESTIONS
◉ provides formal, quantitative expression of management's plans &
intentions, or expectations, and actions to control results.
Answer: Budget
◉ Primary purpose of a budget.
Answer: to control cost
◉ Budget is critical to an organization's survival.
Answer: b/c of relatively low reimbursement for services and high
expense of supplies & equipment
◉ 3 primary objectives of a budget.
Answer: 1. to establish an annual and monthly budget
2. to identify and analyze actual experience compared to the budget
plan
3. to accurately report all financial and statistical data
◉ A BUDGET QUANTIFIES.
, Answer: THE STRATEGIC GOALS OF THE ORGANIZATION
◉ overall plan for future operations expressed in expense dollars
and revenue dollars.
Answer: Operating budget
◉ Nursing salaries are a part of the.
Answer: operating budget
◉ budget for capital or investment, expenditures such as the
purchase of new equipment, the construction of new facilities, items
over a certain amount, *usually $1000*.
Answer: Capital budget
◉ item identification, justification for purchase, priority level, &
bids.
Answer: Components of a capital budget
◉ estimates future or tracks cash receipts and payments that are
tabulated to demonstrate the forecasted cash balance.
Answer: Cash budget
◉ Patient deductibles and copayments are included in.
