The clinic nurse has recently opened a client’s chart on the computer. A resident approaches and requests her to remain logged in so he can add a note to the same chart. Her response should be:

Choice A Reason:

A decline in the expenditure on medical supplies is generally considered a positive variance, as it indicates that the actual costs were lower than the budgeted costs. This reduction in spending can be beneficial for the budget, assuming it does not negatively impact patient care. Therefore, it does not exemplify a negative variance.

Choice B Reason:

An excess of nurses accessible on a specific day might indicate overstaffing, which can lead to higher labor costs than budgeted. However, this scenario does not directly indicate a negative variance unless it results in a budget shortfall due to increased expenses. The context of the question focuses on a shortfall, making this choice less relevant.

Choice C Reason:

A rise in patient satisfaction ratings is a positive outcome and does not relate to budget variances. While important for overall quality of care, patient satisfaction ratings do not directly impact the financial aspects of the budget. This choice does not exemplify a negative variance.

Choice D Reason:

Fewer nurses working than originally planned exemplifies a negative variance because it indicates understaffing, which can lead to compromised patient care and increased workload for the remaining staff. This situation often arises from budget constraints or mismanagement, leading to a shortfall in the budget. It directly reflects the negative impact on staffing and budget planning.

Choice A Reason

A strategic budget is used for long-term planning and aligning financial resources with the organization’s overall strategic goals. It involves setting financial objectives and allocating resources to achieve these goals over an extended period. While strategic budgets are crucial for guiding the organization’s direction, they do not typically cover specific equipment purchases like mechanical ventilators.

Choice B Reason

A capital budget is specifically designed for the purchase of durable goods and significant investments, such as new equipment, infrastructure improvements, or technology upgrades. Mechanical ventilators, being high-cost medical equipment, fall under this category. Capital budgets ensure that funds are allocated for essential investments that enhance the hospital’s ability to provide quality care.

Choice C Reason

An operating budget covers the day-to-day expenses of running a healthcare facility, including salaries, supplies, utilities, and other recurring costs. While operating budgets are essential for maintaining the facility’s daily operations, they do not typically include large, one-time purchases like mechanical ventilators.

Choice D Reason

A unit of service budget is used to allocate costs based on the volume of services provided, such as the number of patient visits or procedures performed. This type of budget helps in managing and predicting costs associated with specific services but is not used for purchasing high-cost equipment like mechanical ventilators.