NLA NURS6226
Advanced Operations & Finance
Management
4.0 Credits
Final Exam Review (Qns & Ans)
2025
©2025
, Multiple Choice Questions (Questions 1–15)
1.
Case: A nurse leader in a multi‑hospital system has been tasked with
reducing operating costs without compromising patient care quality. In
reviewing the unit’s workflow, she identifies several areas of redundancy
and delays.
Question: Which of the following strategies is most likely to reduce
costs and improve patient outcomes in this scenario?
A. Increasing the number of staff shifts
B. Implementing Lean process improvement methodologies
C. Outsourcing fundamental clinical services
D. Removing accountability measures to speed up care delivery
Correct ANS: B. Implementing Lean process improvement
methodologies
Rationale: Lean methodologies focus on eliminating waste,
streamlining processes, and improving efficiency. By reducing
redundancy and delays, patient outcomes are maintained or enhanced
while operating costs are lowered.
---
2.
Case: A hospital administrator directs the finance department to
reallocate capital for an upcoming fiscal year. A nurse leader with
financial responsibilities is asked to review potential investment
opportunities.
Question: Which capital budgeting technique best incorporates risk
into decision making?
A. Simple payback period
B. Net present value (NPV) analysis using a risk‑adjusted discount rate
C. Profitability index without adjustments
©2025
,D. Return on investment (ROI) calculated solely on historical data
Correct ANS: B. Net present value (NPV) analysis using a risk‑adjusted
discount rate
Rationale: NPV analysis with a risk‑adjusted discount rate factors both
the time value of money and the project’s risk profile, providing a more
robust estimate of an investment’s true financial benefit.
---
3.
Case: During quarterly reviews, a nurse leader analyzes the unit’s
budget variance reports. She notices that actual expenses exceed
budgeted amounts primarily due to unexpected overtime.
Question: Which of the following is the most appropriate manager
response to mitigate such variances in the future?
A. Increasing the unit’s annual budget
B. Conducting a root cause analysis of overtime occurrences
C. Ignoring the variance as a one‑time anomaly
D. Disciplining staff to reduce overtime usage
Correct ANS: B. Conducting a root cause analysis of overtime
occurrences
Rationale: Investigating the underlying causes of overtime through a
root cause analysis will identify system inefficiencies or scheduling issues,
allowing targeted interventions that are more sustainable than simply
increasing the budget or punitive measures.
---
4.
Case: A nurse leader seeks to improve the supply chain management
system for pharmaceuticals in a large clinical setting. Delays in drug
delivery are affecting patient care.
Question: Which process improvement initiative is best suited to
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, optimize inventory and supply chain performance?
A. Increasing emergency procurement orders
B. Implementing just‑in‑time (JIT) inventory systems
C. Expanding storage capacity
D. Cutting back on vendor contracts
Correct ANS: B. Implementing just‑in‑time (JIT) inventory systems
Rationale: JIT inventory systems reduce waste and storage costs by
ensuring that supplies arrive exactly when needed. This minimizes delays
in drug delivery and supports continuity of care.
---
5.
Case: A hospital’s financial performance has come under scrutiny. The
nurse leader on the finance committee is tasked with improving the
organization’s operating margin and overall financial health.
Question: Which financial ratio is most critical for evaluating a
healthcare organization’s operational efficiency?
A. Current ratio
B. Gross profit margin
C. Operating margin
D. Debt-to-equity ratio
Correct ANS: C. Operating margin
Rationale: The operating margin measures the percentage of revenue
remaining after all operating expenses are deducted. It is a key indicator
of operational efficiency and the ability to generate surplus from core
activities.
---
6.
Case: A nurse leader in a community hospital is involved in strategic
planning. She must align the unit’s goals with the broader institutional
©2025
Advanced Operations & Finance
Management
4.0 Credits
Final Exam Review (Qns & Ans)
2025
©2025
, Multiple Choice Questions (Questions 1–15)
1.
Case: A nurse leader in a multi‑hospital system has been tasked with
reducing operating costs without compromising patient care quality. In
reviewing the unit’s workflow, she identifies several areas of redundancy
and delays.
Question: Which of the following strategies is most likely to reduce
costs and improve patient outcomes in this scenario?
A. Increasing the number of staff shifts
B. Implementing Lean process improvement methodologies
C. Outsourcing fundamental clinical services
D. Removing accountability measures to speed up care delivery
Correct ANS: B. Implementing Lean process improvement
methodologies
Rationale: Lean methodologies focus on eliminating waste,
streamlining processes, and improving efficiency. By reducing
redundancy and delays, patient outcomes are maintained or enhanced
while operating costs are lowered.
---
2.
Case: A hospital administrator directs the finance department to
reallocate capital for an upcoming fiscal year. A nurse leader with
financial responsibilities is asked to review potential investment
opportunities.
Question: Which capital budgeting technique best incorporates risk
into decision making?
A. Simple payback period
B. Net present value (NPV) analysis using a risk‑adjusted discount rate
C. Profitability index without adjustments
©2025
,D. Return on investment (ROI) calculated solely on historical data
Correct ANS: B. Net present value (NPV) analysis using a risk‑adjusted
discount rate
Rationale: NPV analysis with a risk‑adjusted discount rate factors both
the time value of money and the project’s risk profile, providing a more
robust estimate of an investment’s true financial benefit.
---
3.
Case: During quarterly reviews, a nurse leader analyzes the unit’s
budget variance reports. She notices that actual expenses exceed
budgeted amounts primarily due to unexpected overtime.
Question: Which of the following is the most appropriate manager
response to mitigate such variances in the future?
A. Increasing the unit’s annual budget
B. Conducting a root cause analysis of overtime occurrences
C. Ignoring the variance as a one‑time anomaly
D. Disciplining staff to reduce overtime usage
Correct ANS: B. Conducting a root cause analysis of overtime
occurrences
Rationale: Investigating the underlying causes of overtime through a
root cause analysis will identify system inefficiencies or scheduling issues,
allowing targeted interventions that are more sustainable than simply
increasing the budget or punitive measures.
---
4.
Case: A nurse leader seeks to improve the supply chain management
system for pharmaceuticals in a large clinical setting. Delays in drug
delivery are affecting patient care.
Question: Which process improvement initiative is best suited to
©2025
, optimize inventory and supply chain performance?
A. Increasing emergency procurement orders
B. Implementing just‑in‑time (JIT) inventory systems
C. Expanding storage capacity
D. Cutting back on vendor contracts
Correct ANS: B. Implementing just‑in‑time (JIT) inventory systems
Rationale: JIT inventory systems reduce waste and storage costs by
ensuring that supplies arrive exactly when needed. This minimizes delays
in drug delivery and supports continuity of care.
---
5.
Case: A hospital’s financial performance has come under scrutiny. The
nurse leader on the finance committee is tasked with improving the
organization’s operating margin and overall financial health.
Question: Which financial ratio is most critical for evaluating a
healthcare organization’s operational efficiency?
A. Current ratio
B. Gross profit margin
C. Operating margin
D. Debt-to-equity ratio
Correct ANS: C. Operating margin
Rationale: The operating margin measures the percentage of revenue
remaining after all operating expenses are deducted. It is a key indicator
of operational efficiency and the ability to generate surplus from core
activities.
---
6.
Case: A nurse leader in a community hospital is involved in strategic
planning. She must align the unit’s goals with the broader institutional
©2025
