Contemporary Issues in Nursing Related

Review Contemporary Issues in Nursing related questions and content

A nurse manager is preparing a budget that does not base annual budgets on the revenue and expenditures of the prior year and has the advantage that outdated information is not integrated into the budget. The manager is using which budget method?

  • A. Zero-based
  • B. Incremental
  • C. Labor
  • D. Operational
Correct Answer:

Rationale: Correct Answer: A: Zero-based

Rationale:
1. Zero-based budgeting starts from scratch, evaluating each expense regardless of the prior year.
2. It helps eliminate inefficiencies and ensures resources are allocated to high-priority areas.
3. By not relying on past data, outdated information does not influence the budget decisions.

Summary:
B: Incremental budgeting builds on the previous year's budget, not starting from zero.
C: Labor budget focuses specifically on labor costs, not the overall budgeting approach.
D: Operational budget typically considers historical data and current operations, unlike zero-based budgeting.