The quarterly budget-to-actual expense report for the Emergency Department of a large hospital shows expenses 20% higher than budgeted. Which of the following would be an acceptable reason for the cost overrun?
A. A hospital 20 blocks away closed its emergency department.
B. The unit costs of supplies increased an average of 12%.
C. A scheduled pay raise for orderlies and aides went into effect.
D. IV solution prices were going to rise, so the ED doubled its order.
Answer: A
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