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A nurse leader's key role is to create and monitor a budget. There are fixed and variable costs involved in managing a unit that nurse leaders must understand so they can anticipate revenue and expenses. In addition, a nurse leader must forecast when capital expenses will be required to be able to properly plan for financial allocation. Budgets must align with the organization's strategic plan for optimal operational outcomes.
Imagine this scenario: You are a nurse manager of a 20-bed medical-surgical unit. It is annual budget time, and as a nurse leader, you are responsible for creating the upcoming budget.
Describe primary cost categories that you anticipate for:
Fixed costs
Variable costs
Identify any capital expenses that may be needed for the next budget year.
Provide rationale to justify the need for the capital expenses and explain the return on investment (ROI) for the capital expenses.
Elaborate on how you will use the budget to manage expenses.
Link budgeting process to the strategic plan.
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