lOMoAR cPSD| 47061011
Chapter 23: Budgeting, Productivity, and Costing Out Nursing
Huber: Leadership & Nursing Care Management, 6th Edition
MULTIPLE CHOICE
1. The process of identifying the specific costs related to the delivery of nursing care to each client
so that nurses have data to identify the actual amount of services received is: a. personnel
budget development.
b. evaluating budget expenditures.
c. costing out nursing services.
d. strategic financial planning.
ANS: C
Costing out nursing services is defined as the determination of the costs of the services
provided by nurses. By identifying the specific costs related to the delivery of nursing care to
each client, nurses have data to identify the actual amount of services received.
DIF: Cognitive Level: Remember (Knowledge)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
2. Revenues minus expenses equals:
a. cash flow.
b. expense incurred.
c. income.
d. total reimbursement.
ANS: C
Income (or profit) is defined as the excess of revenues over expenses, or revenues minus
expenses.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
3. A(n) _____ is the difference between the budgeted and actual amounts. a. expense
b. margin
c. revenue
d. variance
ANS: D
.
, lOMoAR cPSD| 47061011
A variance is the difference between the budgeted and the actual amounts. A variance may be
favorable or unfavorable relative to the budget amount.
DIF: Cognitive Level: Remember (Knowledge)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
4. Staff nurses involvement in budgeting is essential because they:
a. have the final authority on the annual budget.
b. have the ability to contain costs at the unit level.
c. have a unique perspective on the budgetary process.
d. are the largest user of the budgeted funds for the unit.
ANS: B
In many organizations, staff nurses are expected to be aware of their unit’s financial
performance and the impact their decisions may have on it. Staff nurses involvement is
essential to the ability to contain costs at the unit level, because they make many decisions
about supply and resource use.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
5. The costs or prices of activities undertaken in the organization’s operations are called: a. budget.
b. income.
c. expenses.
d. revenue.
ANS: C
Expenses are defined as the costs or prices of activities undertaken in the organization’s
operations.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
6. Mary is the manager of the critical care unit. She would like to hire a wound care nurse for the
unit. The type of organizational budget Mary would use to ensure she can hire the new nurse is
called the _____ budget. a. capital
b. personnel
c. operating
d. expense
.
Chapter 23: Budgeting, Productivity, and Costing Out Nursing
Huber: Leadership & Nursing Care Management, 6th Edition
MULTIPLE CHOICE
1. The process of identifying the specific costs related to the delivery of nursing care to each client
so that nurses have data to identify the actual amount of services received is: a. personnel
budget development.
b. evaluating budget expenditures.
c. costing out nursing services.
d. strategic financial planning.
ANS: C
Costing out nursing services is defined as the determination of the costs of the services
provided by nurses. By identifying the specific costs related to the delivery of nursing care to
each client, nurses have data to identify the actual amount of services received.
DIF: Cognitive Level: Remember (Knowledge)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
2. Revenues minus expenses equals:
a. cash flow.
b. expense incurred.
c. income.
d. total reimbursement.
ANS: C
Income (or profit) is defined as the excess of revenues over expenses, or revenues minus
expenses.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
3. A(n) _____ is the difference between the budgeted and actual amounts. a. expense
b. margin
c. revenue
d. variance
ANS: D
.
, lOMoAR cPSD| 47061011
A variance is the difference between the budgeted and the actual amounts. A variance may be
favorable or unfavorable relative to the budget amount.
DIF: Cognitive Level: Remember (Knowledge)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
4. Staff nurses involvement in budgeting is essential because they:
a. have the final authority on the annual budget.
b. have the ability to contain costs at the unit level.
c. have a unique perspective on the budgetary process.
d. are the largest user of the budgeted funds for the unit.
ANS: B
In many organizations, staff nurses are expected to be aware of their unit’s financial
performance and the impact their decisions may have on it. Staff nurses involvement is
essential to the ability to contain costs at the unit level, because they make many decisions
about supply and resource use.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
5. The costs or prices of activities undertaken in the organization’s operations are called: a. budget.
b. income.
c. expenses.
d. revenue.
ANS: C
Expenses are defined as the costs or prices of activities undertaken in the organization’s
operations.
DIF: Cognitive Level: Understand (Comprehension)
TOP: Nursing Process: Assessment
MSC: Client Needs: Safe and Effective Care Environment: Management of Care
6. Mary is the manager of the critical care unit. She would like to hire a wound care nurse for the
unit. The type of organizational budget Mary would use to ensure she can hire the new nurse is
called the _____ budget. a. capital
b. personnel
c. operating
d. expense
.
