Hospital workload statistics and budgeting MCQs With Answer

Introduction

Hospital workload statistics and budgeting are essential topics for M.Pharm students preparing to manage pharmaceutical services within healthcare institutions. This blog presents focused multiple-choice questions designed to deepen understanding of workload indicators—such as bed occupancy rate, average length of stay, patient days, and case-mix index—and practical budgeting concepts including types of budgets, variance analysis, inventory control methods (ABC, VED, EOQ), and cost classification. Each question tests both conceptual knowledge and applied calculation skills relevant to pharmacy management, enabling students to prepare for exams and real-world responsibilities in hospital and community pharmacy settings.

Q1. Which of the following best describes the “bed occupancy rate” in a hospital?

• The average number of days a patient stays in the hospital during a year
• The percentage of available inpatient beds occupied over a specific period
• The number of discharges per 100 admissions
• The ratio of outpatient visits to inpatient admissions

Correct Answer: The percentage of available inpatient beds occupied over a specific period

Q2. What is the formula for Average Length of Stay (ALOS)?

• Total inpatient days divided by number of admissions
• Total admissions divided by number of inpatient days
• Total discharges divided by number of admissions
• Number of occupied beds divided by total beds

Correct Answer: Total inpatient days divided by number of admissions

Q3. Which workload indicator reflects the turnover of patients treated per bed during a period?

• Bed occupancy rate
• Bed turnover rate
• Average length of stay
• Patient day ratio

Correct Answer: Bed turnover rate

Q4. In pharmacy inventory control, ABC analysis ranks items primarily by:

• Criticality to patient care
• Unit cost only
• Annual consumption value (cost × usage)
• Physical volume of items

Correct Answer: Annual consumption value (cost × usage)

Q5. VED analysis in pharmaceutical inventory management classifies drugs by:

• Annual monetary value
• Vital, Essential, Desirable criticality
• Expiry date only
• Storage temperature requirements

Correct Answer: Vital, Essential, Desirable criticality

Q6. Which budget type starts from zero each period and requires justification for every expense?

• Incremental budget
• Zero-based budget
• Line-item budget
• Flexible budget

Correct Answer: Zero-based budget

Q7. Economic Order Quantity (EOQ) formula minimizes which combined costs?

• Purchase cost and insurance cost
• Holding (carrying) cost and ordering cost
• Transportation cost and storage temperature control cost
• Expiry loss cost and administration cost

Correct Answer: Holding (carrying) cost and ordering cost

Q8. Which measure indicates the total number of inpatient days in a hospital during a period?

• Average length of stay
• Patient days
• Bed turnover interval
• Case mix index

Correct Answer: Patient days

Q9. In hospital budgeting, a “capital budget” typically includes which of the following?

• Monthly salaries of staff
• Routine consumables and drugs
• Long-term investments like equipment and building projects
• Utilities and maintenance expenses

Correct Answer: Long-term investments like equipment and building projects

Q10. Which statistical method is commonly used to forecast drug consumption based on past usage?

• Time series analysis (trend analysis)
• Cross-sectional regression using patient demographics only
• Random sampling without historical data
• Chi-square test for categorical variables

Correct Answer: Time series analysis (trend analysis)

Q11. What does “case-mix index” (CMI) reflect in hospital workload measurement?

• Average bed occupancy per ward
• Relative complexity and resource intensity of treated patients
• Number of outpatient consultations per physician
• Ratio of surgical to medical beds

Correct Answer: Relative complexity and resource intensity of treated patients

Q12. Which variance in budgeting points to the difference between budgeted cost and actual cost due to price changes?

• Usage variance
• Price (rate) variance
• Volume variance
• Mix variance

Correct Answer: Price (rate) variance

Q13. In pharmacy services, what does “work sampling” primarily measure?

• Exact time spent on each task by continuous observation
• Proportion of time staff spend on various activities via random observations
• The number of prescriptions dispensed per hour only
• Cost per patient of pharmacy services

Correct Answer: Proportion of time staff spend on various activities via random observations

Q14. Which cost is considered a fixed cost in a hospital pharmacy?

• Cost of drugs purchased (variable with usage)
• Electricity cost for refrigeration (varies monthly)
• Depreciation on dispensing equipment
• Cost of disposables used per prescription

Correct Answer: Depreciation on dispensing equipment

Q15. Break-even analysis in a pharmacy helps determine:

• The maximum profit achievable regardless of costs
• The point at which total revenue equals total costs
• The reorder point for essential drugs
• The optimal staffing schedule

Correct Answer: The point at which total revenue equals total costs

Q16. Which inventory metric indicates the average number of days an item remains in stock before being used or sold?

• Reorder point
• Days of inventory on hand (inventory turnover days)
• Lead time
• Shelf life

Correct Answer: Days of inventory on hand (inventory turnover days)

Q17. When preparing a flexible budget for a hospital pharmacy, the key advantage is that it:

• Requires no historical data
• Automatically fixes all costs regardless of activity
• Adjusts budgeted costs to different activity levels
• Eliminates the need for variance analysis

Correct Answer: Adjusts budgeted costs to different activity levels

Q18. Which of the following best describes “turnover interval” for hospital beds?

• The average number of days between patient discharge and the next admission to the same bed
• The total number of admissions in a month
• The number of beds that remain empty permanently
• The average length of stay for surgical patients only

Correct Answer: The average number of days between patient discharge and the next admission to the same bed

Q19. In budgetary control, an adverse variance indicates:

• Actual costs are lower than budgeted costs
• Actual performance is better than planned
• Actual costs exceed budgeted costs or revenues are below budget
• There is no difference between actual and budgeted amounts

Correct Answer: Actual costs exceed budgeted costs or revenues are below budget

Q20. Which component is critical when calculating the reorder point for a drug with variable demand?

• The unit price only
• Lead time demand and desired safety stock
• The expiration date of the batch
• The physical size of storage shelves

Correct Answer: Lead time demand and desired safety stock

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