NURS6226
Advanced Operations & Finance
Management
Comprehensive Finals Review (Qns & Ans)
2025
1. Which of the following financial metrics is most useful in
assessing the short-term financial health of a healthcare
organization?
- A) Return on Equity (ROE)
- B) Current Ratio
- C) Debt-to-Equity Ratio
- D) Gross Margin
©2024/2025
, Correct ANS: B) Current Ratio
Rationale: The current ratio provides insights into an
organization's ability to cover its short-term liabilities with short-
term assets.
2. In a nursing department budget, which of the following would
be categorized as a variable cost?
- A) Nurse salaries
- B) Clinic lease payments
- C) Medical supplies
- D) Utility costs
Correct ANS: C) Medical supplies
Rationale: Medical supplies vary directly with patient volume,
making them variable costs.
3. Which cost management method involves continuously
improving processes to reduce costs while maintaining quality in
healthcare settings?
- A) Benchmarking
- B) Total Quality Management (TQM)
- C) Activity-Based Costing (ABC)
©2024/2025
, - D) Value Analysis
Correct ANS: B) Total Quality Management (TQM)
Rationale: TQM focuses on continuous process improvement to
enhance quality and reduce costs.
4. Economic Order Quantity (EOQ) is best used to determine
what aspect of inventory management?
- A) Optimal reorder point
- B) Optimal order quantity
- C) Inventory depletion rate
- D) Minimum stock levels
Correct ANS: B) Optimal order quantity
Rationale: EOQ calculates the most cost-effective amount of
stock to order to minimize costs related to ordering and holding
inventory.
5. Which financial document provides a summary of an entity's
revenues and expenses over a specific period?
- A) Balance Sheet
- B) Income Statement
©2024/2025
, - C) Cash Flow Statement
- D) Statement of Retained Earnings
Correct ANS: B) Income Statement
Rationale: An income statement reflects the profit or loss
generated during a specific period.
6. What is the primary objective of capital budgeting in
healthcare finance?
- A) Managing cash flows
- B) Planning for long-term investment projects
- C) Evaluating operational efficiency
- D) Reducing labor costs
Correct ANS: B) Planning for long-term investment projects
Rationale: Capital budgeting is used to evaluate and plan for
substantial capital investments.
7. A break-even analysis helps a healthcare organization
determine
- A) How to optimize staff scheduling
- B) The point where total revenues equal total costs
©2024/2025
Advanced Operations & Finance
Management
Comprehensive Finals Review (Qns & Ans)
2025
1. Which of the following financial metrics is most useful in
assessing the short-term financial health of a healthcare
organization?
- A) Return on Equity (ROE)
- B) Current Ratio
- C) Debt-to-Equity Ratio
- D) Gross Margin
©2024/2025
, Correct ANS: B) Current Ratio
Rationale: The current ratio provides insights into an
organization's ability to cover its short-term liabilities with short-
term assets.
2. In a nursing department budget, which of the following would
be categorized as a variable cost?
- A) Nurse salaries
- B) Clinic lease payments
- C) Medical supplies
- D) Utility costs
Correct ANS: C) Medical supplies
Rationale: Medical supplies vary directly with patient volume,
making them variable costs.
3. Which cost management method involves continuously
improving processes to reduce costs while maintaining quality in
healthcare settings?
- A) Benchmarking
- B) Total Quality Management (TQM)
- C) Activity-Based Costing (ABC)
©2024/2025
, - D) Value Analysis
Correct ANS: B) Total Quality Management (TQM)
Rationale: TQM focuses on continuous process improvement to
enhance quality and reduce costs.
4. Economic Order Quantity (EOQ) is best used to determine
what aspect of inventory management?
- A) Optimal reorder point
- B) Optimal order quantity
- C) Inventory depletion rate
- D) Minimum stock levels
Correct ANS: B) Optimal order quantity
Rationale: EOQ calculates the most cost-effective amount of
stock to order to minimize costs related to ordering and holding
inventory.
5. Which financial document provides a summary of an entity's
revenues and expenses over a specific period?
- A) Balance Sheet
- B) Income Statement
©2024/2025
, - C) Cash Flow Statement
- D) Statement of Retained Earnings
Correct ANS: B) Income Statement
Rationale: An income statement reflects the profit or loss
generated during a specific period.
6. What is the primary objective of capital budgeting in
healthcare finance?
- A) Managing cash flows
- B) Planning for long-term investment projects
- C) Evaluating operational efficiency
- D) Reducing labor costs
Correct ANS: B) Planning for long-term investment projects
Rationale: Capital budgeting is used to evaluate and plan for
substantial capital investments.
7. A break-even analysis helps a healthcare organization
determine
- A) How to optimize staff scheduling
- B) The point where total revenues equal total costs
©2024/2025
