ANM Financial Management and Budgeting 3

Question 1

Which of the following BEST describes the purpose of a capital budget in healthcare?

Accepted Answer

To allocate funds for major equipment, facilities, and long-term investments

Answer

To plan day-to-day operating expenses for the fiscal year

Answer

To track monthly variances in supply costs

Answer

To manage short-term staffing fluctuations

Question 2

A nurse manager is asked to justify a budget request using a cost-benefit analysis. The analysis should compare:

Accepted Answer

The financial costs of a proposal to its measurable financial and non-financial benefits

Answer

Total staff hours to patient satisfaction scores

Answer

Direct costs only to gross revenue

Answer

Fixed costs to variable costs of the program

Question 3

The ANM observes that overtime costs spiked significantly in the last pay period due to unexpected call-outs. This is an example of a:

Accepted Answer

Volume variance

Answer

Efficiency variance

Answer

Rate variance

Answer

Price variance

Question 4

Under a prospective payment system (PPS), hospitals receive reimbursement based on:

Accepted Answer

A predetermined fixed rate per diagnosis-related group (DRG)

Answer

Actual costs incurred for each patient

Answer

The number of nursing hours provided per patient

Answer

Daily room and board charges

Question 5

When a unit's actual expense is lower than budgeted, this is referred to as a:

Accepted Answer

Favorable variance

Answer

Negative variance

Answer

Unfavorable variance

Answer

Volume variance

Question 6

Full-time equivalent (FTE) calculations are used in nursing budgets primarily to:

Accepted Answer

Standardize staffing needs independent of hours worked per week

Answer

Calculate individual nurse productivity scores

Answer

Determine reimbursement rates from payers

Answer

Track supply utilization per patient day

Question 7

Which financial statement shows a healthcare organization's assets, liabilities, and net assets at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Operating budget report