Nurse Executive Test Financial Management & Budgeting Flashcards
6 cards from real Nurse Executive Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Nurse Executive Test Financial Management & Budgeting flashcards as text
What type of budget adjusts projected expenses based on actual patient volume and acuity?
Answer: Flexible budget
A flexible budget recalculates expected costs as patient volume and acuity change, providing a more accurate financial picture.
Which financial metric measures the total cost of delivering nursing care divided by the number of patient days?
Answer: Cost per patient day (CPPD)
Cost per patient day calculates total nursing expenses per patient day to benchmark efficiency across units or time periods.
A nurse executive notices a significant variance between budgeted and actual staffing costs. What should be done FIRST?
Answer: Analyze the root cause of the variance
Identifying the root cause of variance enables informed corrective action rather than reactive decisions that may worsen the situation.
What is a capital expenditure in healthcare financial management?
Answer: Long-term investments in equipment or infrastructure with multi-year value
Capital expenditures represent major investments such as medical equipment or facility renovations that provide value over multiple years.
Which financial statement shows an organization's financial position at a specific point in time?
Answer: Balance sheet
The balance sheet presents assets, liabilities, and equity, reflecting the organization's financial position at a single given date.
What does ROI stand for in healthcare financial analysis, and what does it measure?
Answer: Return on Investment — measures financial benefit relative to cost
ROI quantifies the financial benefit gained from an investment relative to its cost, helping prioritize resource allocation decisions.
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Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- prometric.com — Test delivery · verified Oct 2026
- nursingworld.org — Fees, exam format, registration, renewal, test dates, time limit, score validity, retake policy, passing score · verified Oct 2026