The novice nurse manager is discussing budgeting activities and variance reports with the experienced nurse manager. Which of the following comments by the novice nurse manager indicates that more education is needed?
1. "When I submit my monthly variance report, I need to provide a written explanation for each variance."
2. "I review my variances to determine the issues and identify whether there are ways that I can help prevent the variance from occurring."
3. "It is my responsibility to shelter my staff members from having to worry about this side of client care."
4. "Reviewing the budget and identifying variances is a great way to plan for next year's budget."
Answer: 3
Rationale: The monthly variance report is completed to help plan for the next budget, control costs in the current period, and evaluate the performance of the unit. The nurse manager can use the monthly variance report to identify issues and determine ways to prevent them from occurring in the future. The variance report is submitted monthly, and the nurse manager should provide a written explanation of why the variance occurred. Good nurse managers assist staff members to develop an understanding of the issues surrounding each variance report. The variance report can be very helpful for the nurse manager as he or she plans for the following fiscal year's budget.
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