Question

from leading and managing in nursing book exercise 12-15 identify major budget variances for the current month. Are they favorable or unfavorable and what additional information would help to explain the variances? What are some possible causes for the variances? Are the causes you identified controllable by the nurse manager why or why not? Is a favorable variance on expenses always desirable why or why not? p 228 table 12-3 0n page 228 is used

Answer 1

Major budget variance identified in the current month is the actual projected revenue is excess over the expenses. It shows favorable because of positive variance. the actual code amount for the budget was greater than the amount expensed. But it should be confirmed whether the supplies and utilities are used efficiently and it improved patient outcomes. The possible cause for variance is other operating expenses are not budgeted properly. It can be controlled by nurse manager by analyzing the patient census and the right amount of supplies needed for the patient in accordance with the patient outcome. The favorable variance on expenses is undesirable because the patient condition varies and needs of supplies and other utilities also varied based on that.