A nurse manager is preparing a budget that does not base annual budgets on the revenue and expenditures of the prior year and has the advantage that outdated information is not integrated into the budget.The manager is using which budget method?
A) Zero-based
B) Incremental
C) Labor
D) Operational

Question

Quizplus · Accepted Answer

Zero-based budgeting is a method where the budget starts from a "zero base," and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one. This approach does not rely on previous years' budgets, ensuring that outdated information is not carried over.

A Nurse Manager Is Preparing a Budget That Does Not