The nurse manager is creating the budget for the next fiscal year. Because the client census has been higher in the past year, more supplies were used. This cost was reflected as:
1. Fixed costs.
2. Variable costs.
3. Direct costs.
4. Indirect costs.
2
Explanation: 1. Variable costs depend on and change in direct proportion to client volume and acuity, such as
client care supply expenses. Fixed costs are costs that remain the same for the budget period
regardless of the activity level of the organization, such as insurance premiums. Direct costs are
expenses that directly affect client care, such as salaries for nurses. Indirect costs are
expenditures that are necessary but don?t affect client care directly, such as salaries for
housekeeping.
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