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

The operating budget should align with the organization's strategic priorities and projected patient volumes before examining historical spending.

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Every expense must be justified, eliminating outdated or unnecessary costs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

Zero-based budgeting requires each line item to be justified from scratch each cycle, promoting elimination of low-value 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

Medicaid typically reimburses at lower rates than commercial insurers, so a shift toward more Medicaid patients reduces net revenue per case.

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

Utilization review identifies where supplies are overused or wasted and allows targeted reductions while maintaining care quality.

Question 5

In healthcare financial management, contribution margin is calculated as:

Accepted Answer

Net revenue minus variable costs

Answer

Contribution margin represents the revenue remaining after variable costs are subtracted, available to cover fixed costs and contribute to profit.

(ANM) Assistant Nurse Manager Certification Practice Test