1. The equipment is jointly owned by all units that use it.
2. If clients on the manager’s unit require the use of this equipment, a portion of the cost will be charged to the
unit.
3. The equipment will be rented to the units for use.
4. The nurse manager will ask physicians to refrain from using the equipment.
Correct Answer: 2
Rationale 1: The equipment is owned by the hospital.
Rationale 2: The cost of the equipment will be spread out among the budgets of all the units whose clients require
its use.
Rationale 3: The equipment is not rented to the units for use, but the unit must share in the cost to use the
equipment.
Rationale 4: It is not appropriate for the nurse to attempt to influence care based upon having to pay for
equipment.
Global Rationale:
Cognitive Level: Analyzing
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Evaluation
Learning Outcome: 14-3: Demonstrate how to monitor and control budgetary performance.
Question 25
Type: MCSA
The newly hired nurse manager is involved in the first budgetary cycle since being hired. The manager lists some
capital equipment needs and is surprised when they are not available for staff use two months after the request.
What is the reason for this?
1. The equipment was not approved by the manger’s supervisor.
2. The budgetary cycle takes up to 1 year to occur.
3. The hospital has experienced a downturn in revenue and it not fulfilling promises.
4. The nurse manager failed to complete the correct request.
Rationale 1: There is no indication that the request was not approved, just that it has not yet been filled.
Rationale 2: The budgetary cycle of a large organization typically takes about 1 year to be completed. If the new
manager sent in a request for the next budget, it may be 12–18 months before the equipment arrives.
Rationale 3: There is no indication that the hospital is not fulfilling budgetary promises, just that the request has
not yet been filled.
Rationale 4: There is no indication that the manager made an error, just that the request has not yet been filled.
Global Rationale:
Cognitive Level: Applying
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Evaluation
Learning Outcome: 14-3: Demonstrate how to monitor and control budgetary performance.
Question 26
Type: MCSA
A nurse manager writes the following note: “Over personnel budget by $1,250 in April due to late snowstorm.
Nurses unable to get to work. Overtime wages paid.” Why is this note important?
1. It will help the manager create the budget for the next year.
2. It is required by The Joint Commission.
3. All variances must be documented and forwarded to the hospital attorney.
4. It ensures that there is no question of diversion of hospital funds.
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Sullivan, Effective Leadership and Management, 8/e Test Bank
Copyright 2013 by Pearson Education, Inc.
Nursing/Integrated Concepts: Nursing Process: Implementation
Learning Outcome: 14-4: Explain how to determine a budget variance.
Question 27
Type: FIB
A nurse manager has received the following e-mail from the finance department: “Your unit’s budget for travel is
$1,500 for the fiscal year. The unit’s actual expenditures have been $2,120.” The unit is over budget by _____
percent.
Standard Text: Round to the nearest hundredth percent.
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Implementation
Learning Outcome: 14-4: Explain how to determine budget variance.
Question 28
Type: MCMA
An unfavorable rate variance has occurred in the salary budget of a unit. When investigating this variance, the
nurse manager should look for which situations?
Note: Credit will be given only if all correct choices and no incorrect choices are selected.
Standard Text: Select all that apply.
1. Were any unexpected bonuses awarded?
2. Did agency personnel hours exceed the number predicted in the budget?
3. Were new employees hired at lower wages?
4. Did the number of client days exceed the predicted budgeted amount?
5. Were fewer nursing hours worked than were predicted?
Sullivan, Effective Leadership and Management, 8/e Test Bank
Rationale 1: The position control sheet includes the names and FTE factors for each individual employed by the
unit.
Rationale 2: Wage ranges are not included in this information.
Rationale 3: The names of all unit employees are part of the position control sheet.
Rationale 4: The position control sheet categorizes those working on the unit by position. Therefore, the licensure
level of the nurse would be indicated.
Rationale 5: Resignations are recorded on this sheet.
Global Rationale:
Cognitive Level: Applying
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Implementation
Learning Outcome: 14-4: Explain how to determine budget variance.
Question 30
Type: MCSA
A nursing assistant tells a nurse, “I am going to have to call in sick tomorrow because I don’t have a babysitter.”
How should the nurse respond to this information?
1. The assistant’s sick time is earned and should be used in any way the assistant wishes.
2. The assistant should use personal time, not sick time for this situation.
3. The assistant’s absence will not be a major problem for the unit as long as only one day is missed.
4. It will be okay for the assistant to miss a day because it will help another assistant get overtime wages.
Cognitive Level: Applying
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Evaluation
Learning Outcome: 14-5: Describe how staff affect budgetary performance.
Sullivan, Effective Leadership and Management, 8/e Test Bank
Copyright 2013 by Pearson Education, Inc.