NR 446 Nursing Leadership Week 7 Study Guide 2026 |Chamberlain
College
1. A nurse manager is planning the budget and needs to purchase a new piece of
equipment that costs $6,000. Under which budget category does this fall?
A. Operating budget
B. Capital budget
C. Personnel budget
D. Cash budget
Answer: B
Rationale: Capital budgets involve the purchase of major equipment and assets that
generally cost more than a specific dollar amount and have a long life expectancy.
2. Which type of budget is used to manage the daily expenses of a nursing unit,
such as medical supplies and electricity?
A. Personnel budget
B. Capital budget
C. Operating budget
D. Strategic budget
Answer: C
Rationale: The operating budget reflects expenses that change in response to the volume
of service, such as supplies and utilities.
,3. What is the largest expense in a healthcare organization’s budget?
A. Medical equipment
B. Information technology
C. Facility maintenance
D. Personnel/Labor costs
Answer: D
Rationale: Personnel costs are the largest part of the operating budget because healthcare
is labor-intensive.
4. A nurse manager notices that the actual expenditures for the month were
higher than the budgeted amount. What is this difference called?
A. Capitalization
B. Revenue
C. Variance
D. Fiscal year
Answer: C
Rationale: Variance is the difference between the planned budget and the actual amount
spent.
5. Which budgeting method requires managers to justify every expense from
scratch each year, regardless of previous spending?
A. Incremental budgeting
B. Zero-based budgeting
C. Flexible budgeting
D. Performance-based budgeting
Answer: B
Rationale: Zero-based budgeting starts at zero each year and requires every item to be
justified for the new period.
, 6. What does the term ‘Nursing Hours Per Patient Day’ (NHPPD) measure?
A. The cost of nursing care per patient
B. The productive nursing time available for each patient
C. The quality of nursing documentation
D. The time spent on non-nursing tasks
Answer: B
Rationale: NHPPD is a standard measure of productivity that calculates the nursing hours
worked in 24 hours divided by the patient census.
7. Which component of the PDSA cycle involves carrying out a small-scale trial
of a proposed change?
A. Plan
B. Study
C. Do
D. Act
Answer: C
Rationale: The ‘Do’ phase of the Plan-Do-Study-Act cycle is where the test or change is
implemented and data is collected.
8. What is the primary goal of Root Cause Analysis (RCA) after a sentinel event?
A. To assign blame to the individual responsible
B. To satisfy legal requirements for insurance
C. To fire the staff member who made the error
D. To identify system failures and prevent recurrence
Answer: D
Rationale: RCA is a retrospective process used to identify the underlying system issues
that led to an error, focusing on prevention rather than blame.
College
1. A nurse manager is planning the budget and needs to purchase a new piece of
equipment that costs $6,000. Under which budget category does this fall?
A. Operating budget
B. Capital budget
C. Personnel budget
D. Cash budget
Answer: B
Rationale: Capital budgets involve the purchase of major equipment and assets that
generally cost more than a specific dollar amount and have a long life expectancy.
2. Which type of budget is used to manage the daily expenses of a nursing unit,
such as medical supplies and electricity?
A. Personnel budget
B. Capital budget
C. Operating budget
D. Strategic budget
Answer: C
Rationale: The operating budget reflects expenses that change in response to the volume
of service, such as supplies and utilities.
,3. What is the largest expense in a healthcare organization’s budget?
A. Medical equipment
B. Information technology
C. Facility maintenance
D. Personnel/Labor costs
Answer: D
Rationale: Personnel costs are the largest part of the operating budget because healthcare
is labor-intensive.
4. A nurse manager notices that the actual expenditures for the month were
higher than the budgeted amount. What is this difference called?
A. Capitalization
B. Revenue
C. Variance
D. Fiscal year
Answer: C
Rationale: Variance is the difference between the planned budget and the actual amount
spent.
5. Which budgeting method requires managers to justify every expense from
scratch each year, regardless of previous spending?
A. Incremental budgeting
B. Zero-based budgeting
C. Flexible budgeting
D. Performance-based budgeting
Answer: B
Rationale: Zero-based budgeting starts at zero each year and requires every item to be
justified for the new period.
, 6. What does the term ‘Nursing Hours Per Patient Day’ (NHPPD) measure?
A. The cost of nursing care per patient
B. The productive nursing time available for each patient
C. The quality of nursing documentation
D. The time spent on non-nursing tasks
Answer: B
Rationale: NHPPD is a standard measure of productivity that calculates the nursing hours
worked in 24 hours divided by the patient census.
7. Which component of the PDSA cycle involves carrying out a small-scale trial
of a proposed change?
A. Plan
B. Study
C. Do
D. Act
Answer: C
Rationale: The ‘Do’ phase of the Plan-Do-Study-Act cycle is where the test or change is
implemented and data is collected.
8. What is the primary goal of Root Cause Analysis (RCA) after a sentinel event?
A. To assign blame to the individual responsible
B. To satisfy legal requirements for insurance
C. To fire the staff member who made the error
D. To identify system failures and prevent recurrence
Answer: D
Rationale: RCA is a retrospective process used to identify the underlying system issues
that led to an error, focusing on prevention rather than blame.
