The nurse manager meets with upper administration and learns that the strategic plan for nursing is to have 80% BSN staff within the next 3 years

Question

The nurse manager then built her budget to meet the organization's strategic goal by providing tuition reimbursement and flexible work hours, which required some agency staffing. Which approach to budgeting is used?
a. Iterative
b. Top-down
c. Participatory
d. Zero-based

Answer 1

ANS: A
Correct: The iterative approach is a combination of the top-down and the participatory approach, with upper management defining strategic goals and then unit leaders developing their operating budgets to incorporate their individual goals in conjunction with the organization's strategic goals.
Incorrect:
b. In top-down approach, upper management sets budget goals and imposes those goals on the rest of the organization.
c. In the participatory approach, the people responsible for achieving the budget goals are included in goal setting.
d. Zero-based budgeting is a type of budget rather than process in which a budget is built from the assumption of no volume and no resources allocated.