The nurse manager is determining the unit budget for the next fiscal y

QUESTION

The nurse manager is determining the unit budget for the next fiscal year. The current year’s expenses for the care area are $1,425,740.

If the percentage increase for the next year is to be 5% what should the manager calculate as being the next year’s budget? (Calculate to the nearest whole number.)

ANSWER:

Correct Answer: $1,497,027

The simplest method for determining a budget is the flat percentage increase that develops a budget based on year-to-date expenses and multiplies it by the inflation rate. If the current year’s spending is $1,425,740 the manager should multiply this figure by 5% and then add that value to the current spending figure, or: 1,425,740 × 5% = 71,287 + 1,425,740 = $1,497,027.