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

Variance analysis identifies whether the overage is due to volume, price, or efficiency issues before corrective action is taken.

Question 2

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

Accepted Answer

Flexible budget

Answer

A flexible budget adjusts planned expenditures based on actual or anticipated volume of activity.

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

Cost per patient day is determined by dividing total unit expenses by the total number of patient days in the period.

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

Break-even analysis determines the point at which the cost of purchasing equals the cumulative cost of renting, guiding the capital investment decision.

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

Indirect costs, such as housekeeping and administrative overhead, support the organization but are allocated rather than directly charged to a unit.

(ANM) Assistant Nurse Manager Certification Practice Test

(ANM) Assistant Nurse Manager Certification Practice Test

ANM Financial Management and Budgeting 2