Adult-Gerontology Clinical Nurse Specialist (CNS) Practice Exam

Which type of budgeting emphasizes the results a unit aims to achieve rather than the resources used?

1. Resource budgeting

2. Key budgeting

3. Reserve budgeting

4. Performance budgeting

The correct answer is: Performance budgeting

Performance budgeting emphasizes the results a unit aims to achieve, focusing on outcomes rather than the resources consumed. This approach links the funds allocated to specific performance objectives, helping organizations evaluate the efficiency and effectiveness of their expenditures. By concentrating on the results, performance budgeting facilitates better accountability and fosters a results-oriented culture within the organization. In contrast, resource budgeting tends to focus more on the allocation of resources and inputs used without a direct emphasis on outcomes. Key budgeting and reserve budgeting also concentrate on aspects other than just the results achieved, making performance budgeting the most relevant choice for a framework aimed at promoting outcome-based financial planning and management.