ANM Financial Management and Budgeting 4

Question 1

A nurse manager is preparing the annual operating budget. Which of the following should be considered FIRST?

Accepted Answer

The organization's strategic plan and anticipated patient volumes

Answer

Last year's actual expenditures and current year variances

Answer

The capital budget requests from the unit

Answer

Salary increases scheduled for next fiscal year

Question 2

Which of the following is a PRIMARY advantage of zero-based budgeting for a nursing unit?

Accepted Answer

Every expense must be justified, eliminating outdated or unnecessary costs

Answer

It requires less time to prepare than traditional budgeting

Answer

It assumes all prior budget lines are valid and carries them forward

Answer

It focuses exclusively on capital expenditures

Question 3

A hospital's payer mix has shifted to a higher proportion of Medicaid patients. The ANM should anticipate this will most likely:

Accepted Answer

Decrease net revenue due to lower Medicaid reimbursement rates

Answer

Increase net revenue per case

Answer

Have no impact on unit-level budgeting

Answer

Increase capital budget allocations

Question 4

The ANM is asked to reduce supply expenses by 10% without compromising patient safety. The BEST approach is to:

Accepted Answer

Conduct a utilization review to identify waste and standardize products

Answer

Eliminate all discretionary supply orders immediately

Answer

Reduce supply par levels across all categories equally

Answer

Defer supply ordering until the end of the fiscal year

Question 5

In healthcare financial management, contribution margin is calculated as:

Accepted Answer

Net revenue minus variable costs

Answer

Total revenue minus total expenses

Answer

Fixed costs minus variable costs

Answer

Gross revenue minus capital expenditures

Question 6

A nurse manager receives a monthly financial report showing that hours per patient day (HPPD) is consistently higher than budget. This most likely indicates:

Accepted Answer

Staffing levels are higher relative to census than budgeted

Answer

Patient acuity is lower than planned

Answer

Revenue is exceeding projections

Answer

Supply costs are the primary budget driver

Question 7

Which of the following BEST describes a rolling budget?

Accepted Answer

A continuously updated budget that adds a new period as the current period closes

Answer

A budget based on prior year actuals with a fixed percentage increase

Answer

A budget that must be fully approved by the board each quarter

Answer

A zero-based budget reviewed annually