NRSE 416 Case Study Nugyet help!

linda93 · Apr 19, 2012

Can anyone here clarify the chart for me? I emailed the TA and have not got a response. I have racked my brain over this thing!
I am confused about the column that states "This month's budget" in the revenue row. The 'actual' is 300,000. This months budget is 350,000. The variance is 50,000.
Ok, so what does this mean?? To me this says that the unit is under 50,000 of what its projected performance is....meaning its losing money. I got this rationale because in the text on page 669 it states 'projected (budgeted) performance'. So I applied this to the case study.
Shouldn't this be indicated with (50,000) in the variance column instead of 50,000 showing a loss???
**OR**
Am I completely reading TOOO much into this? And the budget for the unit is 350,000 and they have saved 50,000 dollars?
HELP!

I have 2 classes and am JUST looking at this assignment. I"ll get back to you if I have any "words' of wisdom.

Inimica18 · Apr 20, 2012

I think that there was a budget of $350,000 and that $50,000 were saved. But now that I read your rationale for both I am confused. Just as confused as with writing this paper this week and this case study :confused: Can't say I like budgeting and business skills...

linda93 · Apr 20, 2012

I think that there was a budget of $350,000 and that $50,000 were saved. But now that I read your rationale for both I am confused. Just as confused as with writing this paper this week and this case study Can't say I like budgeting and business skills...

My TA wrote in the announcement that the paper had to be 3 pages- NO MORE NO LESS-....now the task of taking out things. I had the assignment done 3 days ago. I'm glad I didn't turn it in.

looking at the assignment. there are 2 sides to the grid. monthly and yearly

the revenue column is the only one that isn't clear to me.

if the budget for the month is 350,000 but the department only made 300,000 shouldn't the variance be a loss? it looks like the monthly budget for revenue wasn't met. I understand the yearly side being 500,000 over budget. HMMMMM. you think there is a mistake?

incredibleme · Apr 20, 2012

Yes! The variance is a loss because the unit was anticipated to make that much and did not. My TA finally responded. The chart could be much clearer.

incredibleme · Apr 20, 2012

I think that there was a budget of $350,000 and that $50,000 were saved. But now that I read your rationale for both I am confused. Just as confused as with writing this paper this week and this case study Can't say I like budgeting and business skills...

"Budget" in terms of the text is the 'predicted performance'-it is how much the unit is anticipated to make. Not as in 'budget' spending money for the unit. Hope this helps....

Inimica18 · Apr 20, 2012

"Budget" in terms of the text is the 'predicted performance'-it is how much the unit is anticipated to make. Not as in 'budget' spending money for the unit. Hope this helps....

Aaaaah lightbulb!!! As I was just typing my answers I was thinking that I should better check this post again because I might have misunderstood my mind. That makes much more sense! Thank you. I feel really stupid...

Inimica18 · Apr 20, 2012

"budget" in terms of the text is the 'predicted performance'-it is how much the unit is anticipated to make. not as in 'budget' spending money for the unit. hope this helps....

aaaaah lightbulb!!! as i was just typing my answers i was thinking that i should better check this post again because i might have misunderstood my mind. that makes much more sense! thank you. so really, the nurse manager is not doing so good if just looking at the plain numbers. revenue is like the "gross income" of her unit in which expenses would have to be subtracted before actually getting a income correct?? i feel really stupid..

linda93 · Apr 20, 2012

Aaaaah lightbulb!!! As I was just typing my answers I was thinking that I should better check this post again because I might have misunderstood my mind. That makes much more sense! Thank you. I feel really stupid...

LOL.I feel like an idoit. I STILL have a block about this....I'm going to be a terrible manager LOL.

With the definition above I now understand the left side of the grid.

how does the "definition" of budget work for the right side?

Does it mean that she hasn't hit the yearly budget yet? is the unit is 500,000 short for the year?

linda93 · Apr 20, 2012

Yes! The variance is a loss because the unit was anticipated to make that much and did not. My TA finally responded. The chart could be much clearer.

if the variance was a loss then why is it not in parenthesis?

Inimica18 · Apr 20, 2012

Well, I don't know either about the parenthesis. I am thinking that is because it actually is not a "negative" number is the mathematical sense like the others, but it is negative in the aspect of not meeting what was required. Does that make any sense?? Revenue in the book was defined as "income or amounts owed for purchased services or good" (p.687). So in other words it is income without anything else (such as expenses, salaries etc) subtracted...right??

linda93 · Apr 20, 2012

Well, I don't know either about the parenthesis. I am thinking that is because it actually is not a "negative" number is the mathematical sense like the others, but it is negative in the aspect of not meeting what was required. Does that make any sense?? Revenue in the book was defined as "income or amounts owed for purchased services or good" (p.687). So in other words it is income without anything else (such as expenses, salaries etc) subtracted...right??

Ok..that makes it clearer. I'm SOOO glad I have a high A in this class because this assignment will not be A worthy. LOL.