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 unfavourable variance in a monthly expense report may result from
A) overestimation of inflation.
B) higher than expected numbers of acutely ill patients.
C) net revenue in excess of net expenses.
D) not replacing staff members who called in sick.

Question

Quizplus · Accepted Answer

Variance reflects the difference between what was projected (including inflationary costs)and the actual performance in a budget.When the variance is negative or unfavourable,the amount spent is more than what was budgeted (expenses exceed revenue); this may be a result of higher numbers of acutely ill patients as opposed to overestimation of inflation (which would have resulted in a higher initial cost projection and might have resulted in a positive variance).

After Reviewing Her Monthly Budget Report,the Nurse Manager Sees That