Ethics and Issues in Contemporary Nursing Related

Review Ethics and Issues in Contemporary Nursing related questions and content

Nurses on a unit met with the nurse manager as part of participatory budgeting. They ask, "What exactly is the difference between fixed and variable costs? Understanding this will help us better understand the budgeting process." The manager provides a definition and asks the staff to list types of direct and indirect cost. Which example would indicate a need for further teaching?

  • A. Fixed costs would include accreditation fees.
  • B. Fixed cost would include the cost for the automated medication-dispensing system.
  • C. Variable cost would include the nurse manager's salary.
  • D. Variable cost would include the salary expense for registered nurses.
Correct Answer: C

Rationale: The correct answer is C because the nurse manager's salary is typically considered a fixed cost, not a variable cost. Fixed costs remain constant regardless of the level of production or activity, while variable costs change in direct proportion to the level of activity. The nurse manager's salary is a fixed cost because it remains the same regardless of how many nurses are employed or how many patients are being cared for.

A: Fixed costs such as accreditation fees are correct examples.
B: Fixed costs like the cost for the automated medication-dispensing system are also correct examples.
D: Variable costs like the salary expense for registered nurses are correct examples.

Therefore, choice C would indicate a need for further teaching as it misidentifies the nurse manager's salary as a variable cost when it should be classified as a fixed cost.