Deck 23: Management of Pharmacy Operations

Question 1

When an individual pharmacy works alone and deals with a representative of a pharmaceutical company to negotiate price, quantity, and delivery, this is called ______________ purchasing.

Answer 1

independent

Question 2

An example of cost control would be

A) analyzing the cost and time savings of an automated pill counter
B) comparing inventory requirements with or without a long-term care contract
C) changing to an alternate supplier of less expensive prescription vials
D) examining the pharmacy personnel salary requirements if pharmacy hours are extended

Answer 2

changing to an alternate supplier of less expensive prescription vials

Question 3

If a total cost of delivering a prescription changes unexpectedly, which factor would most likely be to blame?

A) turnover rate of employees
B) change in utility costs from the electric company
C) increase in health insurance premiums for employees
D) change in costs of prescription labels

Answer 3

change in costs of prescription labels

Question 4

The following are considered expense accounts, EXCEPT

A) rent and maintenance
B) salaries
C) printing and postage
D) drug rebates

Question 5

Pharmacy purchasing usually involves the following, EXCEPT

A) independent purchasing
B) group purchasing
C) retail purchasing
D) prime supplier

Question 6

A convenient and effective technique for ordering might include

A) colored stickers corresponding to when an item was purchased
B) writing down lot numbers and expiration dates in a notebook
C) running a report from a supplier of what was purchased 6 months ago
D) reordering items only as they expire or when they completely run out

Question 7

The procedure for evaluating costs and benefits of only those programs whose benefits are evaluated to supercede the costs is called ________________________.

Question 8

A relationship with a single supplier in order to obtain lower prices and better service is called a(n) ________________.

Question 9

A(n) _________________ is a form that is used to order drugs, devices, and supplies from a supplier.

Question 10

An example of a cost analysis study would be

A) increasing salaries to lower employee turnover rate
B) decreasing the cost of over-the-counter products to increase sales
C) changing to a different wholesaler due to better payment terms
D) examining the average cost to dispense one prescription

Question 11

Purchasing a major portion from a drug supplier would be considered

A) independent purchasing
B) group purchasing
C) retail purchasing
D) prime supplier

Question 12

Cost analysis studies are usually performed to

A) increase patient satisfaction and return rate
B) decrease use of expensive medications
C) estimate total cost and compare advantages of two or more systems
D) evaluate and improve current system

Question 13

A cost-benefit analysis is a(n)

A) tool to evaluate the effects of projected price increases
B) procedure to evaluate the costs and benefits of programs in which benefits are greater than the costs
C) procedure to evaluate the direct costs of a product
D) both b and c

Question 14

An advantage of purchasing from a prime supplier would be

A) decreased economic competition over time
B) that prices can never increase
C) increased quality across the complete line of supplier's products
D) simplified purchasing and receiving paperwork

Question 15

When cost finding, what is commonly overlooked?

A) direct cost of the product
B) cost of packaging the product
C) overhead
D) labeling of the product

Question 16

Which of the following is true regarding pharmacy management?

A) There is an increase in the number of pharmacists who own their own business.
B) The need for pharmacy managers has increased.
C) Pharmacists are more likely to be owners than employees.
D) Pharmacists have more purely distributive duties than ever before.

Question 17

An item that is purchased but not paid for at the same time is known as a(n) ________________.

Question 18

The ultimate goal of an effective health program is to offer the best __________ service for the most affordable price.

Question 19

Pharmacy costs are often expressed as the following, EXCEPT

A) cost per item
B) cost per patient day
C) cost per lives saved
D) cost per dose

Question 20

Intangible __________ are the most difficult type to measure.

Question 22

What are four factors that affect cost in the hospital and community pharmacy?

Question 23

Explain the effects of inventory errors on financial statements.

Question 24

Explain cost analysis and cost control. Give an example for each one.

Question 25

List at least five different types of expense accounts.