The nurse manager needs to determine the most economical level of ...

[captainjonesify]

The nurse manager needs to determine the most economical level of inventory, because supplies represent a significant cost factor. To keep costs down, the nurse manager places small orders frequently. This is an example of reducing what kind of cost?
 
  a. Order cost
  b. Carrying cost
  c. Short cost
  d. Stock-out cost

Question 2

The hospital is promoting a healthy living program for its employees. On what part of cost containment is the hospital focusing?
 
  a. Cost fairs
  b. Cost management
  c. Cost avoidance
  d. Cost reduction

[ebonylittles]

Answer to Question 1

ANS: B
The carrying cost is the expense involved in holding inventories. To keep carrying costs down, the nurse manager should place small orders frequently.

Answer to Question 2

ANS: D
Healthy living programs, such as promotion of exercise activities, stocking of heart-wise foods in the cafeteria, and smoking cessation classes, may help keep workers healthy and thus reduce sick time, absenteeism, and health care costs.