A Nurse Manager Plans the Fiscal Budget to Include Salaries

Multiple Choice

A nurse manager plans the fiscal budget to include salaries for two RNs for two 12-hour shifts with a patient census of 6 in the short-stay observation room.The nurse manager reviews the budget report 3 months later and notes that the salary expenses are higher than was budgeted because of higher-than-planned RN staff salaries.This additional RN staff is necessary to meet patient care needs because the census has remained constant at 10 patients rather than the 6 projected when the budget was developed.The difference between the planned budget and the actual cost is referred to by what term?

A) Revenue
B) Variance
C) Zero-based budgeting
D) Capital expenditures