Leadership ATI Proctored Related

Review Leadership ATI Proctored related questions and content

A nurse manager is considering the variances of the budget. Fewer monies were spent than expected. What type of variance is this?

  • A. Unfavorable variance
  • B. Favorable variance
  • C. Dependent variance
  • D. Independent variance
Correct Answer: B

Rationale: The correct answer is B: Favorable variance. This is because spending less money than expected is positive for the budget, indicating efficiency. A favorable variance means actual costs are lower than budgeted, leading to cost savings. In contrast, an unfavorable variance (option A) would occur if more money was spent than anticipated, indicating overspending. Choices C and D are incorrect as they do not directly address the concept of budget variances and are not commonly used terms in budgeting analysis.