The nurse managers are discussing the health care organization's recent adoption of a zero-based budget. Which of the following statements is most closely associated with a zero-based budget?
1. "It doesn't take very long to do this type of budget."
2. "The most difficult part about this type of budget is trying to find strong rationale to keep something I've had for the last 3 years."
3. "It's nice to be able to adjust from the information I've used in the previous budget report."
4. "I can just focus on this department. I don't have to worry about coordinating my budget with any other manager."
Answer: 2
Rationale: A zero-based budget is difficult to create because each expense must be re-justified to continue to spend the money again in the future. This budget is very time-consuming to produce. It can result in major changes in plans or direction, and other interacting departments must be included while creating this type of budget. The other type of budget is a flexible-based budget. This is created by using information from previous budget reports to come up with the new budget. This is much less time-consuming and easier to produce. This type of budget is done through a series of adjustments from the previous budget report.
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