Certified Nurse Manager and Leader (CNML) Practice Test

Which of the following is NOT a type of cost included in a budget?

1. Fixed costs

2. Variable costs

3. Non-recurring costs

4. Effective cost management training

The correct answer is: Effective cost management training

Effective cost management training is not categorized as a direct cost included in a budget for operational functions. Budgets typically account for costs that relate directly to operational activities, such as fixed costs, which remain constant regardless of the volume of services provided (like salaries and rent), and variable costs, which fluctuate based on service volume (like medical supplies and utilities). Non-recurring costs, while they can occur infrequently, are also considered for budgeting when they pertain to specific, identifiable expenses that are not expected to repeat regularly. In contrast, effective cost management training is an investment in staff development and may not have a direct, quantifiable financial cost linked to the immediate budget lines. It represents an indirect investment in improving financial efficiency but does not fit into the traditional categories of costs associated with day-to-day operations or services rendered. Therefore, it is not included as a budget type.