WGU D118 STRATEGIC HEALTHCARE
MANAGEMENT - COMPREHENSIVE
FINAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS
1. A nurse manager is evaluating the unit’s budget and notices that the actual cost for
supplies was $15,000, while the budgeted amount was $12,000. Which type of variance does
this represent?
A. Favorable volume variance
B. Unfavorable efficiency variance
C. Unfavorable price/spending variance
D. Favorable revenue variance
Answer: C
Conceptual Explanation: An unfavorable variance occurs when actual costs exceed
budgeted costs. Since the spending was higher than planned, it is an unfavorable spending
variance.
2. Which leadership style is characterized by a leader who inspires followers to transcend
their own self-interests for the good of the organization and is capable of having a profound
effect on followers?
A. Transactional Leadership
,B. Transformational Leadership
C. Laissez-faire Leadership
D. Autocratic Leadership
Answer: B
Conceptual Explanation: Transformational leaders focus on vision and inspiration to
motivate employees beyond basic job requirements, fostering organizational commitment.
3. According to Lewin’s Three-Step Model of Change, which stage involves overcoming the
pressures of both individual resistance and group conformity?
A. Refreezing
B. Movement
C. Stabilizing
D. Unfreezing
Answer: D
Conceptual Explanation: Unfreezing is the first step, where the need for change is
recognized and old habits are challenged to prepare for the new state.
4. A hospital CEO is conducting a SWOT analysis. The hospital has recently acquired a state-of-
the-art robotic surgery system that competitors do not have. This represents a:
A. Weakness
B. Opportunity
, C. Strength
D. Threat
Answer: C
Conceptual Explanation: Strengths are internal factors that provide a competitive
advantage. Owning unique technology is an internal capability.
5. Under Value-Based Purchasing (VBP), what determines a significant portion of a hospital’s
reimbursement from CMS?
A. The total number of patients treated annually
B. Adherence to the previous year’s budget
C. The complexity of procedures performed
D. Performance on quality measures and patient experience
Answer: D
Conceptual Explanation: VBP links provider payments to improved performance on
various quality metrics, including clinical outcomes and HCAHPS scores.
6. Which ethical principle is violated if a healthcare administrator ignores a surgeon’s
repeated technical errors to avoid a conflict with a high-revenue provider?
A. Autonomy
B. Beneficence
C. Non-maleficence
MANAGEMENT - COMPREHENSIVE
FINAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS
1. A nurse manager is evaluating the unit’s budget and notices that the actual cost for
supplies was $15,000, while the budgeted amount was $12,000. Which type of variance does
this represent?
A. Favorable volume variance
B. Unfavorable efficiency variance
C. Unfavorable price/spending variance
D. Favorable revenue variance
Answer: C
Conceptual Explanation: An unfavorable variance occurs when actual costs exceed
budgeted costs. Since the spending was higher than planned, it is an unfavorable spending
variance.
2. Which leadership style is characterized by a leader who inspires followers to transcend
their own self-interests for the good of the organization and is capable of having a profound
effect on followers?
A. Transactional Leadership
,B. Transformational Leadership
C. Laissez-faire Leadership
D. Autocratic Leadership
Answer: B
Conceptual Explanation: Transformational leaders focus on vision and inspiration to
motivate employees beyond basic job requirements, fostering organizational commitment.
3. According to Lewin’s Three-Step Model of Change, which stage involves overcoming the
pressures of both individual resistance and group conformity?
A. Refreezing
B. Movement
C. Stabilizing
D. Unfreezing
Answer: D
Conceptual Explanation: Unfreezing is the first step, where the need for change is
recognized and old habits are challenged to prepare for the new state.
4. A hospital CEO is conducting a SWOT analysis. The hospital has recently acquired a state-of-
the-art robotic surgery system that competitors do not have. This represents a:
A. Weakness
B. Opportunity
, C. Strength
D. Threat
Answer: C
Conceptual Explanation: Strengths are internal factors that provide a competitive
advantage. Owning unique technology is an internal capability.
5. Under Value-Based Purchasing (VBP), what determines a significant portion of a hospital’s
reimbursement from CMS?
A. The total number of patients treated annually
B. Adherence to the previous year’s budget
C. The complexity of procedures performed
D. Performance on quality measures and patient experience
Answer: D
Conceptual Explanation: VBP links provider payments to improved performance on
various quality metrics, including clinical outcomes and HCAHPS scores.
6. Which ethical principle is violated if a healthcare administrator ignores a surgeon’s
repeated technical errors to avoid a conflict with a high-revenue provider?
A. Autonomy
B. Beneficence
C. Non-maleficence
