ATI Proctored Leadership Exam Related

Review ATI Proctored Leadership Exam related questions and content

When planning a budget, the nurse manager knows that costs depend on and change in direct proportion to patient volume and activity. What type of costs are these?

  • A. Variable costs
  • B. Indirect costs
  • C. Fixed costs
  • D. Direct costs
Correct Answer: A

Rationale: The correct answer is A: Variable costs. Variable costs are costs that change in direct proportion to the level of activity or volume. In this scenario, as patient volume and activity increase or decrease, the costs will fluctuate accordingly. Indirect costs (B) are not directly tied to patient volume. Fixed costs (C) remain constant regardless of patient volume. Direct costs (D) are specific to the production of a good or service and are not necessarily impacted by patient volume.