Question: Staff nurses involvement in budgeting is essential because they:

have the final authority on the annual budget.

have the ability to contain costs at the unit level.

have a unique perspective on the budgetary process.

are the largest user of the budgeted funds for the unit.

Answer: have the ability to contain costs at the unit level.

Question: The management team of a large hospital is attempting to identify the specific cost of providing nursing services. This process is known as:

costing out services.

fee-for-service care provision.

priority nursing management.

quality versus cost balance.

Answer: priority nursing management. WRONG

Question: A staff nurse’s accurate recording of all services and supplies used to provide care to each client in her assignment is necessary for determining calculations used in which of the following budgets?

Expense

Gross

Inpatient

Revenue

Answer: Revenue

Question: Using resources to maximize health benefits while simultaneously using resources to maximize cost-effectiveness is:

costing out nursing services.

fiscal responsibility.

priority nursing management.

capital constraint.

Answer: fiscal responsibility.

Question: The operating budget covers a specific period, called a ___________ year.

fiscal

budget

calendar

federal government

Answer: fiscal

Question: Supply budgets are a major component of the operating budget. Items such as office supplies, intravenous solutions, instruments, linen, gloves, and other personal protective equipment are examples of __ costs.

fixed

flexible

variable

resource

Answer: variable

Question:

Answer: fiscal responsibility.

Question: The manager of a rural, thriving, nurse-managed clinic is considering purchasing equipment to furnish two additional examination rooms. The resource he must consider is the ______budget.

capital.

expense

operating

product line

Answer: capital

Question: A(n) _________ is the difference between the budgeted and the actual amounts.

Answer: variance

Question: The incorporation of economic evaluation into clinical practice is important to productivity because:

rationing must occur.

health care resources are limited.

providers may not turn away clients.

uninsured clients get the same health care as insured clients.

Answer: health care resources are limited.