ANM Financial Management and Budgeting 2

Question 1

A nurse manager notices supply costs are 15% over budget midway through the fiscal year. What is the FIRST action to take?

Accepted Answer

Analyze variances to identify the root cause

Answer

Request an immediate budget increase

Answer

Reduce staffing to offset supply costs

Answer

Defer all non-emergency supply orders

Question 2

Which budget type allocates resources based on expected patient volume and service demand for the upcoming period?

Accepted Answer

Flexible budget

Answer

Zero-based budget

Answer

Capital budget

Answer

Static budget

Question 3

When calculating the cost per patient day, which of the following is the correct formula?

Accepted Answer

Total expenses divided by patient days

Answer

Total revenue divided by patient days

Answer

Fixed costs divided by variable costs

Answer

Direct costs divided by indirect costs

Question 4

A hospital is comparing the long-term financial benefit of purchasing new infusion pumps versus continuing to rent them. This decision requires a:

Accepted Answer

Break-even analysis

Answer

Variance analysis

Answer

Zero-based budget review

Answer

Operating budget adjustment

Question 5

Indirect costs in a nursing unit budget are BEST described as costs that:

Accepted Answer

Support operations but cannot be directly linked to a specific unit

Answer

Vary directly with patient census

Answer

Are directly attributable to patient care activities

Answer

Are included in capital expenditure requests

Question 6

When preparing a staffing budget, the nurse manager must account for productive versus non-productive hours. Non-productive hours include:

Accepted Answer

Paid time off, sick leave, and education time

Answer

Overtime hours worked at the bedside

Answer

Hours worked during holidays for patient care

Answer

Hours allocated for charge nurse duties

Question 7

The ANM is reviewing a proposal to add a full-time RN position. Which financial metric would BEST demonstrate the value of this investment to administration?

Accepted Answer

Return on investment including quality and safety outcomes

Answer

Gross revenue per nurse

Answer

Total salary and benefits cost only

Answer

Number of overtime hours currently being used