A nurse has recently been appointed to the position of nurse manager. To become successful in managing the unit's budget, the new nurse manager should: (Select all that apply.)

Question

a. read the financial policy manual to learn more about the organization's budgeting process.
b. allow the nursing administration office to manage the unit's budget until he or she is able to complete an online financial management course.
c. communicate regularly with a person in the hospital's finance office about interpreting budget reports.
d. pay attention to only the bottom line numbers in budget reports rather than trying to understand each line in these reports.
e. discuss the process of developing budgets with other members of the management team.

Answer 1

ANS: A, C, E
Correct:
a. Knowing the organization's financial policies is an important step toward understanding the organization's budget process.
c. Building a relationship with the finance office is fundamental to learning about the budgeting.
e. As one participates more in the budget process, one's understanding of the process and related responsibilities is enhanced.
Incorrect:
b. Managing the budget requires more than an online course; it requires participation in the budgeting process as well as personal study, working with mentors, attending classes, reading books and journals, and joining professional organizations that promote health care finance and budget knowledge.
d. A manager needs to know what each line in the budget means to understand how the bottom line numbers are derived.