Question
19.Mr. Anderson is the manager of the surgical Intensive Care Unit. The March budget exhibited a $13,410 favorable variance. Patient days were very close to
19.Mr. Anderson is the manager of the surgical Intensive Care Unit. The March budget exhibited a $13,410 favorable variance. Patient days were very close to the budgeted patient days, but because of three resignations, less salary was paid out than expected. What should Mr. Anderson conclude about this variance?
a.He is doing a very good job in controlling his budget and saving money by not replacing the nurses who terminated.
b.The variance was not under Mr. Andersons control, so the variance is not relevant to his managerial performance.
c.Given the money saved, Mr. Anderson should not seek to fill the vacant positions.
d.Although money was saved in salary costs, there is a possibility that quality of care declined.
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