Nokea
A nurse manager plans the fiscal budget to include salaries for two RNs for two 12-hour shifts with a patient census of 6 in the short-stay observation room. The nurse manager reviews the budget report 3 months later and notes that the salary expenses are higher than was budgeted because of higher-than-planned RN staff salaries. This additional RN staff is necessary to meet patient care needs because the census has remained constant at 10 patients rather than the 6 projected when the budget was developed. The difference between the planned budget and the actual cost is known as:
Correct Answer: B
Rationale: The correct answer is B: variance. In this scenario, the nurse manager planned a budget based on a patient census of 6 but the actual census remained constant at 10, leading to higher-than-planned RN staff salaries. The difference between the planned budget and the actual cost is known as a variance. Variances help identify discrepancies between planned and actual expenses, enabling managers to adjust budgets accordingly. Revenue (A) refers to income generated, not the difference between planned and actual expenses. Monitoring (C) is the process of overseeing and evaluating activities, not specifically related to budget discrepancies. Capital expenditures (D) are long-term investments in assets, not related to budget variances.