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

Question

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

Quizplus · Accepted Answer

Correct:The incremental approach is simply a forward trend of current or recent performance with adjustments for future growth or decline in revenues or expenses.
Incorrect:b.A zero-based approach does not trend data from the previous year; rather it is developed as though the budget were being prepared for the first time.
c.Productivity metrics represents the amount of work produced with a specific quantity of input or resources.
d.Capital budgets are concerned with major purchases such as equipment paid for over several years.

The Nurse Managers of an Organization Are Meeting with Administration