Nurse Executive Test Nurse Executive Test Financial Management & Budgeting

Question 1

What type of budget adjusts projected expenses based on actual patient volume and acuity?

Accepted Answer

Flexible budget

Answer

Zero-based budget

Answer

Fixed budget

Answer

Capital budget

Question 2

Which financial metric measures the total cost of delivering nursing care divided by the number of patient days?

Accepted Answer

Cost per patient day (CPPD)

Answer

Cost per discharge

Answer

Nursing hours per patient day (NHPPD)

Answer

Full-time equivalent (FTE) ratio

Question 3

A nurse executive notices a significant variance between budgeted and actual staffing costs. What should be done FIRST?

Accepted Answer

Analyze the root cause of the variance

Answer

Immediately cut staff hours to close the gap

Answer

Request emergency additional budget funds

Answer

Ignore the variance if it is under 5%

Question 4

What is a capital expenditure in healthcare financial management?

Accepted Answer

Long-term investments in equipment or infrastructure with multi-year value

Answer

Recurring operational expenses such as salaries

Answer

Short-term supply and medication costs

Answer

Daily patient revenue collections

Question 5

Which financial statement shows an organization's financial position at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Budget variance report

Question 6

What does ROI stand for in healthcare financial analysis, and what does it measure?

Accepted Answer

Return on Investment — measures financial benefit relative to cost

Answer

Rate of Intervention — measures clinical efficiency

Answer

Ratio of Improvement — measures quality gains

Answer

Revenue of Institution — measures total income