A primary function of the budgeting process is to provide managers with an opportunity to:
a. insist that salary increases for all nurses are included in the annual budget.
b. discuss concerns about resource allocation with leaders of the organization who are capable of resolving issues.
c. develop a mechanism for changing from zero-based budgeting to incremental budgeting.
d. develop for all staff an educational program related to supply usage.
ANS: B
Correct: Coordination and communication are very important functions of budgeting that require many different groups within an organization to come together with organizational leaders to discuss the resources necessary to accomplish the goals of a business unit.
Incorrect:
a. Although salary increases to remain competitive are important and should be discussed, providing a mechanism for insisting on salary increases is not the primary function of the budget process.
c. Changing from zero-based to incremental budgeting is not a primary budget function but is related to a method of budgeting.
d. Developing educational programs is not a primary budget function, although the program suggested may serve as a means of teaching staff about supply management.
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