Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
14 Cards in this Set
- Front
- Back
|
Average Wholesale Price
|
The national average cost of a drug product to a pharmacy; however in practice, this is simply a “benchmark” price set by manufacturers.
|
|
|
Copayment
|
A specific amount required to be paid by a patient
|
|
|
Expenses
|
Costs associated with the operation of a pharmacy, which are often called “overhead”; expenses include salaries, wages, rent, utilities, telephone, insurance, legal and accounting fees, advertising, and depreciation.
|
|
|
Gross Profit
|
The marginal difference between actual cost and total reimbursement; it is also known as gross margin
|
|
|
Inventory
|
A list of merchandise, itemized by various types, and its costs
|
|
|
Inventory Control
|
The process of managing inventory in order to meet customer demand at the lowest possible cost, w/ a minimum of investment in inventory; average inventory is calculated by adding beginning and ending inventory, and dividing by 2
|
|
|
Inventory Turnover
|
A measure of how many times a year a pharmacy’s average inventory "turns" or is sold; cost of goods sold divided by average inventory gives the inventory turnover rate.
|
|
|
Markup
|
The difference betwen the purchase price and the selling price of an item, often expressed as a percentage; markup percentage is calculated by subtracting the purchase price from the selling, and then dividing by the purchase price.
|
|
|
Markup Method
|
The cost of a medication based on price and dollar margin on the ingredient cost of the dispensed product.
|
|
|
Net Profit
|
The net amount of money left after all operating or overhead expenses have been subtracted from the gross margin; maybe a profit loss.
|
|
|
Return On Investment
|
A measure of the percentage of net profit as related to net worth; a net profit divided by networth, multiplied by 100, gives this percentage.
|
|
|
Sales
|
The revenue generated by the sale of the pharmacy's inventory (or goods) and services
|
|
|
Third-Party Payer
|
A company that pays part of the cost of an invoice between a health-care provider and patient
|
|
|
Turnover
|
A measure of time that a product remains in stock and is not used by a pharmacy
|
