The process of identifying the specific costs related to the delivery of nursing care to each client so that nurses have data to identify the actual amount of services received is:
a. personnel budget development.
b. evaluating budget expenditures.
c. costing out nursing services.
d. strategic financial planning.
answer
ANS: C Costing out nursing services is defined as the determination of the costs of the services provided by nurses. By identifying the specific costs related to the delivery of nursing care to each client, nurses have data to identify the actual amount of services received.
question
Revenues minus expenses equals:
a. cash flow.
b. expense incurred.
c. income.
d. total reimbursement
answer
ANS: C Income (or profit) is defined as the excess of revenues over expenses, or revenues minus expenses
question
A(n) _____ is the difference between the budgeted and actual amounts.
a. expense
b. margin
c. revenue
d. variance
answer
ANS: D A variance is the difference between the budgeted and the actual amounts. A variance may be favorable or unfavorable relative to the budget amount.
question
Staff nurses involvement in budgeting is essential because they:
a. have the final authority on the annual budget.
b. have the ability to contain costs at the unit level.
c. have a unique perspective on the budgetary process.
d. are the largest user of the budgeted funds for the unit.
answer
ANS: B In many organizations, staff nurses are expected to be aware of their unit's financial performance and the impact their decisions may have on it. Staff nurses involvement is essential to the ability to contain costs at the unit level, because they make many decisions about supply and resource use
question
The costs or prices of activities undertaken in the organization's operations are called:
a. budget.
b. income.
c. expenses.
d. revenue
answer
ANS: C Expenses are defined as the costs or prices of activities undertaken in the organization's operations.
question
Mary is the manager of the critical care unit. She would like to hire a wound care nurse for the unit. The type of organizational budget Mary would use to ensure she can hire the new nurse is called the _____ budget.
a. capital
b. personnel
c. operating
d. expense
answer
ANS: B The personnel budget is the staffing budget of the cost center.
question
The manager of a rural, thriving, nurse-managed clinic is considering purchasing equipment to furnish two additional examination rooms. The resource he must consider is the _____ budget.
a. capital
b. expense
c. operating
d. product line
answer
ANS: A The capital budget is the plan for the purchase of major equipment or assets.
question
The operating budget covers a specific period, called a _____ year.
a. fiscal
b. budget
c. calendar
d. federal government
answer
ANS: A The operating budget covers a specific period, called a fiscal year. The fiscal year may begin July 1, may correspond to the calendar year beginning January 1, or may follow the federal government year that starts on October 1.
question
The relationship between output and the goods and services used to produce them is called:
a. acuity.
b. revenue.
c. variability.
d. productivity
answer
ANS: D Productivity is defined as the relationship between output and the goods and services used to produce them
question
A budget functions as a:
a. capital constraint.
b. employee management tool.
c. human resource tool.
d. planning instrument.
answer
ANS: D A budget is defined as a written financial plan aimed at controlling the allocation of resources. It functions as both a planning instrument and an evaluation tool useful for financial management
question
A staff nurse's accurate recording of all services and supplies used to provide care to each client in her assignment is necessary for determining calculations used in which of the following budgets?
a. Expense
b. Gross
c. Inpatient
d. Revenue
answer
ANS: D Revenue is defined as income or amounts owed for purchased services or goods. Total operating expenses are the result of summing the costs of all resources (e.g., labor, patient consumable supplies, small medical equipment, utilities, office supplies, and other related miscellaneous fees and materials) used to produce services.
question
In the past, health care organizations viewed nursing services as primarily a(n):
a. acute care asset.
. expense.
c. reimbursement tool.
d. revenue generator.
answer
ANS: B Nursing has historically been seen as a cost center but not a revenue generator.
question
The management team of a large hospital is attempting to identify the specific cost of providing nursing services. This process is known as:
a. costing out services.
b. fee-for-service care provision.
c. priority nursing management.
d. quality versus cost balance.
answer
ANS: A Costing out nursing services was defined as the determination of the costs of services provided by nurses.
question
Using resources to maximize health benefits while simultaneously using resources to maximize cost-effectiveness is:
a. costing out nursing services.
b. fiscal responsibility.
c. priority nursing management.
d. capital constraint.
answer
ANS: B Fiscal responsibility is defined as using the resources of the patient to maximize health benefit while simultaneously using the resources of the institution to maximize cost-effectiveness. Fiscal responsibility is essential when trying to improve client care by improving managerial and clinical decisions in nursing.
question
The incorporation of economic evaluation into clinical practice is important to productivity because:
a. rationing must occur.
b. health care resources are limited.
c. providers may not turn away clients.
d. uninsured clients get the same health care as insured clients
answer
ANS: B The incorporation of economic evaluation into clinical practice is important to productivity, because health care resources are limited and choices must, and will, be made.
question
The key advantage of activity-based costing is:
a. workload is determined based on the required hours of nursing care.
b. it reflects what it costs to provide services and identifies why costs were incurred.
c. data can be used in constructing a personnel budget because it is linked to the volume indicator of patient days.
d. the judgment of an expert nurse clinician must override an empirical system and be based on patient's needs in real time.
answer
ANS: B
The key advantage of activity-based costing is that it reflects what it costs to provide services and identifies why costs were incurred.
question
Janice is going to give her patient a bath. She has the option of using prepackaged bathing wipes or a bath basin and washcloths. She chooses the bath basin and washcloths because she knows their performance is the same but they are less expensive. Janice's choice is an example of:
a. rationing.
b. fiscal responsibility.
c. costing out services.
d. activity-based costing
answer
ANS: B Fiscal responsibility is defined as using the resources of the patient to maximize health benefit while simultaneously utilizing the resources of the institution to maximize cost-effectiveness. Being fiscally responsible means making responsible resource allocation decisions.
question
Supply budgets are a major component of the operating budget. Items such as office supplies, intravenous solutions, instruments, linen, gloves, and other personal protective equipment are examples of _____ costs
a. fixed
b. flexible
c. variable
d. resource
answer
ANS: C Supply items such as office supplies, intravenous solutions, instruments, linen, gloves and other personal protective equipment, medical/surgical supplies, and drugs are examples of supplies that would vary with a higher volume of patient days. These supply items are variable (the amount used will vary based on the volume of service provided).
question
The phases of the budget process are: (Select all that apply.)
a. preparation.
b. completing the forms.
c. auditing and monitoring.
d. revision and submission.
e. selection and evaluation
answer
ANS: A, B, D The budget process consists of three time periods. During preparation, the manager reviews the organization's strategic plan and the last year's budget for the cost center. The manager will then be given budget documents to use in preparing the cost center budget. As budget documents go through review by senior management, requests tend to exceed the available resources. This necessitates review, adjustment, and appeal.
question
A(n) _____ is a written financial plan aimed at controlling the allocation of resources
answer
ANS: budget
A budget is defined as a written financial plan aimed at controlling the allocation of resources. It functions as both a planning instrument and an evaluation tool useful for financial management.
question
A(n) _____ is the difference between the budgeted and the actual amounts.
answer
ANS: variance
A variance is the difference between the budgeted and the actual amounts. A variance may be favorable or unfavorable relative to the budget amount.
question
A measure of the severity of illness of an individual patient or the aggregate patient population on a unit is called _____.
answer
ANS: acuity
Acuity is defined as a measure of the severity of illness of an individual patient or the aggregate patient population on a unit
Haven't found what you need?
Search for quizzes and test answers now
Quizzes.studymoose.com uses cookies. By continuing you agree to our cookie policy
