ANM - Assistant Nurse Manager Financial Management and Budgeting Questions and Answers

Question 1

An Assistant Nurse Manager is reviewing the unit's monthly budget report and notices a significant negative variance in the salary line.
This is primarily due to higher-than-expected use of agency nurses.
Which of the following is the MOST appropriate initial action?

Accepted Answer

Analyze patient acuity levels and staffing ratios for the month.

Answer

Implement a hiring freeze for all open nursing positions.

Answer

Request an immediate increase in the unit's operating budget.

Answer

Mandate that all current staff work overtime to cover shifts.

Question 2

Which of the following items would an Assistant Nurse Manager typically include in a proposal for the unit's CAPITAL budget?

Accepted Answer

Replacement of IV pumps.

Answer

Annual staff competency training.

Answer

Stocking of routine medical supplies.

Answer

Overtime pay for the upcoming holiday season.

Question 3

A hospital unit has a target of 8.5 Nursing Hours Per Patient Day (NHPPD). For a 24-hour period, the unit has a census of 30 patients and a total of 240 productive nursing hours were worked. Which statement accurately reflects the unit's productivity?

Accepted Answer

The unit is under budget with an NHPPD of 8.0.

Answer

The unit is over budget with an NHPPD of 9.0.

Answer

The unit is exactly on budget with an NHPPD of 8.5.

Answer

The unit's productivity cannot be determined with this data.

Question 4

The primary purpose of conducting a variance analysis for a nursing unit's budget is to:

Accepted Answer

Compare actual financial performance to the budgeted plan to identify and explain differences.

Answer

Ensure the unit spends its entire allocated budget each year.

Answer

Justify requests for additional staff regardless of patient volume.

Answer

Identify and punish staff members who are inefficient with supplies.

Question 5

An Assistant Nurse Manager is involved in developing the unit's operating budget. Which of the following expenses will constitute the largest portion of this budget?

Accepted Answer

Staff salaries and benefits.

Answer

Medical and surgical supplies.

Answer

Equipment maintenance contracts.

Answer

Patient education materials.

Question 6

When an Assistant Nurse Manager is justifying the need for a new, expensive piece of patient monitoring equipment to the hospital's leadership, which type of budget is being addressed?

Accepted Answer

The capital budget.

Answer

The operating budget.

Answer

The supply budget.

Answer

The discretionary budget.