Ethics & Issues in Contemporary Nursing Related

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The nurse managers of an organization are meeting with administration to plan the budget. The above graph shows last year's 2011 expenditures, and the team will trend the upcoming budget knowing that, with the slowdown in the economy, patient census will be lower. Which budget approach is being used?

  • A. Incremental
  • B. Zero-based
  • C. Productivity metrics
  • D. Capital
Correct Answer: B

Rationale: The correct answer is B: Zero-based. Zero-based budgeting requires starting from scratch each budget cycle, meaning all expenses must be justified regardless of previous budgets. In this scenario, the nurse managers are planning for a budget based on the expectation of lower patient census due to the economic slowdown. This aligns with the zero-based approach as they will need to re-evaluate and justify all expenses to accommodate the changes in patient volume.

A: Incremental budgeting involves making adjustments to the previous budget, which is not suitable for significant changes like a decrease in patient census.
C: Productivity metrics focus on measuring efficiency and performance, rather than the budgeting approach.
D: Capital budgeting is related to long-term investments in assets, which is not the primary focus in this scenario.