Question

From Leading And Managing In Nursing Book

From the current month budget variances: are they favorable or unfavorable? what additional information would help you explain the varinces? what are some possible causes for each variance? are the causes controllable by the nurse manager, why or why not?

are favorable variances on expenses always desirable? why or why not?

Statement of Operations Showing Profit and Loss From a Neighborhood Nursing Center: March 2018 Current Month Actual Year-to-Date Budget 1 2 0 31 3230 600 Netvenues alla letná stai bai bilan boiled Beef

Answer 1

1. This report is not favorable because of the large variances in the budget.

2. Additional information which will be helpful are

• The patient logs
• Payment bills
• Insurance receipt
• Other services bills
• Report of the personal expenses explaining where and why the money is spent
• Donation receipt/ certificate

3. Possible causes for the variances are,

• Improper documentation
• Inefficiency of the nursing manager
• Unexpected expenses
• Seasonal ups and down
• Non-economic spending of money
• Claiming of insurance due to any accidents in center

4. No, not all of it is controllable, because there are inevitable expenses which will come unexpectedly.eg:travel, insurance, seasonal ups and downs

5. Variances are always desirable or inevitable, we have to plan the budget accordingly to control such situations