Question

After reviewing her monthly budget report, the nurse manager sees that she has a negative variance, which prompts her to change the staffing schedule. A negative or unfavorable variance in a monthly expense report may result from:

a. Overestimation of inflation.
b. Higher than expected client acuity.
c. Net revenue exceeding net expenses.
d. Not replacing staff who called in sick.

Answer 1

A negative or unfavorable variance in a monthly expense report may result from overestimation of inflation, higher than expected client acuity, or not replacing staff who called in sick. Options A, B, and D are correct.

Step-by-step explanation:

A negative or unfavorable variance in a monthly expense report may result from:

1. Overestimation of inflation - If the nurse manager overestimates the expected inflation rate, the budgeted expenses may be higher than the actual expenses, leading to a negative variance.
2. Higher than expected client acuity - If the nurse manager underestimates the acuity level of the clients, it can result in higher expenses for staffing and resources, causing a negative variance.
3. Not replacing staff who called in sick - If the nurse manager fails to replace staff members who are absent due to sickness, it can lead to increased overtime costs or the need to bring in temporary staff, resulting in a negative variance.