A nurse manager has calculated that providing 75 hours of direct nursing care per day requires that 120 hours must actually be worked by nursing staff. The manager is involved in: (Select all that apply.)
a. developing the capital budget.
b. applying productivity metric.
c. monitoring the labor budget.
d. incremental budgeting processes.
e. addressing budget assumptions.
ANS: B, C
Correct:
b. The nurse manager is determining the amount of work produced by calculating the actual number of nursing hours worked, which is productivity metric.
c. Budgets use productivity metrics.
Incorrect:
a. The manager is not evaluating long-term major expenses, which are the components of the capital budget.
d. The nurse is not planning a new budget by using an incremental increase from the prior budgeting period; this activity is part of the incremental budgeting process.
e. The manager is not addressing issues such as the stability of prices, projected patient census, and recruitment efforts for the next year, all of which would be considerations in budget assumptions.
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