Adult-Gerontology Clinical Nurse Specialist (CNS) Practice Exam

What is the primary focus of performance budgeting?

1. Resource allocation

2. Identifying surplus funds

3. Defining objectives for performance

4. Monitoring expenses

The correct answer is: Defining objectives for performance

The primary focus of performance budgeting is centered on defining objectives for performance. This approach emphasizes establishing clear goals and outcomes that programs or departments aim to achieve. By concentrating on the results and objectives, performance budgeting ensures that resources are allocated effectively to areas that will yield the most significant impact. The ultimate aim is to enhance accountability and improve the efficiency of resource usage in achieving desired results. This method distinguishes itself from simply monitoring expenses or identifying surplus funds, as it encompasses a broader strategic framework. It requires linking budgetary decisions to measurable performance outcomes, thus allowing for a more comprehensive evaluation of both financial and service delivery performance.