Certified Nurse Manager and Leader (CNML) Practice Test

What is commonly included in indirect costs when calculating total nursing costs?

1. Direct patient care supplies

2. Employee benefits

3. Medical equipment

4. Food services provided to patients

The correct answer is: Employee benefits

Indirect costs, when calculating total nursing costs, often encompass expenses that are not directly associated with patient care but are necessary for the overall operation of the healthcare facility. Employee benefits are a prime example of such costs. They include health insurance, retirement contributions, paid time off, and other benefits that support nursing staff but do not directly correlate with the care provided to individual patients. These costs are critical to consider since they impact the overall expense of maintaining a workforce, contributing significantly to the financial sustainability of healthcare organizations. Effective management of indirect costs, including employee benefits, is essential for budgeting and financial planning in nursing and healthcare in general. In contrast, direct patient care supplies, medical equipment, and food services are considered direct costs, as they can be directly traced to patient treatment and care. Understanding the distinction between direct and indirect costs allows nurse managers and leaders to make informed decisions about budgeting, resource allocation, and financial management within their departments.