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Posted: September 10th, 2021
Nursing, Variance analysis is performed by nurse managers and is used to determine the need for future costs and expenses
Variance analysis is performed by nurse managers and is used to determine the need for future costs and expenses. Budget variances refer to the differences between the budget and the performance or productivity. A large budget variance means that the people who developed the budget may have underestimated how much money they would need for the upcoming year. In contrast, a small budget variance means that they overestimated the amount they would need for the next year. Investigating budget variances helps nursing leaders and staff to understand the nuances and circumstances of their specific units. Translating and sharing information about budget variances with unit staff allows for future planning and implementation of measures to manage fiscal resources.
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