A large hospital uses line item control of its budget. Variance analysis shows that one unit is exceeding its budget for Repairs due to a manufacturing flaw in a commonly used device that is no longer under warranty. The unit manager can ____.
A) transfer money from the Rental and Leasing account to the Repairs account
B) approve a budget amendment that increases the Rental account budget
C) go over budget on Repairs and submit a Variance Report
D) request a meeting with upper management to change the budget

Question

Quizplus · Accepted Answer

The unit manager can request a meeting with upper management to change the budget because the variance is due to a manufacturing flaw in a commonly used device that is no longer under warranty.

A Large Hospital Uses Line Item Control of Its Budget