In preparing a budget, the nurse manager needs to anticipate the cost

QUESTION

In preparing a budget, the nurse manager needs to anticipate the cost of benefits (e.g., health, life insurance, pension and retirement plans).

Based on the usual cost of benefits, how much should a nurse manager include for a total full-time salary cost of $312,000?

a. $78,000-$93,600
b. $62,400-$78,000
c. $46,800-$93,600
d. $31,200-$46,800

ANSWER:

ANS: C
The average cost of benefits is approximately 25% to 30% of a full-time employee’s salary. In this example, the correct response is obtained by multiplying the total full-time salary cost by .25 and .30.