You are the manager of a medical- surgical unit. Today is April 1st, and the fiscal year
Question:
You are the manager of a medical- surgical unit. Today is April 1st, and the fiscal year began on July 1st. You work with a variable budget and have the opportunity to make changes to the current budget based on variance. You cannot go over the total budgeted amount assigned to you. Your budget is presented below.
Annual Budget | Expended in March | Expended Year to Date | Amount Remaining | |
Personnel | 500,000 | 25,000 | 375,000 | 125,000 |
Overtime | 50,000 | 20,000 | 40,000 | 10,000 |
Supplies | 18,000 | 1,800 | 16,500 | 1,500 |
Travel | 1,000 | 0 | 300 | 700 |
Equipment | 5,000 | 0 | 5,000 | 0 |
Staff education | 1,000 | 200 | 600 | 400 |
Several factors that you must consider include:
1. You have been told to decrease your overtime expenditure.
2. Your unit has been designated as the unit to accept nursing home patients which will increase the cost of supplies
3. Your full-time night nurse has resigned and needs to be replaced. In order to hire new nurses a 16 hour orientation would be required.
4. You would like two nurses to attend a train the trainer workshop for a cost of $1000 each.
Questions:
1. How you will address these requests based on the budget print out.
2. What expenses can be deferred to the new fiscal year. For the new fiscal year, I would defer What budgeting area was your previous projections most accurate. What budgeting area was your previous projections most inaccurate. Factors that may have contributed to situations of being over budget as determined by variance.
Managerial Economics and Business Strategy
ISBN: 978-0073523224
8th edition
Authors: Michael Baye, Jeff Prince