Management Final

Question 1

1. In 2012, your gross salary was $120,000. You saved $15,000 in your 401K and $5,000 in a Roth IRA. Therefore, you should be able to deduct $20,000 from your taxable income. Is this correct?
   A. Yes
   B. No

Answer 1

B. No

Question 2

2. You are reviewing applications for an open technician position which requires working weekends from 9 am to 5 pm. None of your other techs are available to work on weekends.There are two candidates for the position: Bob and Steve. Bob has six years experience as a pharmacy technician. He has excellent evaluation ratings from his previous employer. He is available to work anytime during the weekdays and 9 am to 3 pm on the weekends. Steve has 6 months experience as a pharmacy technician and has average evaluation ratings from a previous employer. He is only available on Tuesdays during the week but is available anytime on the weekend. Given that these two applicants are your only options who would you hire?
   A. Bob
   B. Steve

Answer 2

B. Steve - due to his availability

Question 3

3. In making hiring decisions, employers would select a candidate’s attitude before aptitude.
   A. True
   B. False

Answer 3

A. True

Question 4

4. If cost to the pharmacy is AWP-30%, reimbursement is AWP-35% + $1.50 dispensing fee and AWP is $40. Did you make a profit?
   A. Yes
   B. No

Answer 4

B. No

Question 5

5. Which of the following are benefits that an employer can offer you?

A. 401K
B. Pension
C. Year-end Bonus
D. All of the above

Answer 5

D. All of the above

Question 6

6. Your company will contribute 6% of your annual base salary to your 401K plan provided that you contribute 3%. In 2011, you made $120,000 and contributed $3,000 to your 401K plan. Will the company contribute to your 401K?
   A. Yes
   B. No

Answer 6

B. No

Question 7

7. Your supervisor has asked that you project the budget for next year. Therefore, you start the process and determine these factors that influence your budget: there was a hurricane this past year, a new competitor opened in your market, and your raise was now based on achieving greater than 3% increase in sales. Have you projected your budget correctly?
   A. Yes
   B. No

Answer 7

B. No

Question 8

8. You would like to open your own independent pharmacy and realize the importance of a sound business plan. Therefore, the core components of your business plan must include: executive summary, background, mission statement, marketing, location analysis, human resources, financial projections, legal issues and regulations, competitive advanatge, qualifications of owner, and goals and measurements.
   A. True
   B. False

Answer 8

A. True

Question 9

9. 2, 6, 1, 4, 3, 9, 4, ?

A. 1
B. 3
C. 5
D. 7

Answer 9

D. 7

Question 10

10. Dispensing fees have risen in the past few years which have improved reimbursements to pharmacies.
    A. True
    B. False

Answer 10

B. False

Question 11

11. You have decided to hire pharmacy technician (Joanne) and an offer is made for employment. The offer was made on Monday at 8 am. You are very excited about this new employee based on their work ethic and experience. You call the drug test center on Tuesday at 9 am to find the results of the drug test. The representative at the center states that there are no results for Joanne. You follow up with Joanne and she is terribly sorry because on the way to testing she was involved in a car accident. Joanne provides you a police report collaborating her story. Can you give her another chance to drug test?
    A. Yes
    B. No

Answer 11

B. No

Question 12

12. Your friend Matthew would like to be your financial planner. He is not credentialed as a Certified Financial Planner or any other financial credentials. He has no experience working with any financial institution. Can he practice as a financial planner?
    A. Yes
    B. No

Answer 12

A. Yes

Question 13

13. Your supervisor has approved the hiring of a 0.5 FTE pharmacist. Full time at your hospital is 42 hours and therefore, you are allowed to hire a pharmacist for a maximum of 20 hours.
    A. True
    B. False

Answer 13

B. False

Question 14

14. Based on a weekly pharmacy budget of $1500, after paying 2 FT technicians (40 hours) who make $13 and $15 per hour, you want to hire another FT tech at 14$. Can you afford to hire another FT tech?
    A. Yes
    B. No

Answer 14

B. No

Question 15

15. You have decided to hire a new technician and are in the process of completing the necessary paperwork. One of the forms that the technician completes is the W-4 for withholding taxes. The technician states that she would like to take more taxes out so that hopefully they will not have to owe the IRS when filing her tax return. You advise her to claim 0 exemptions which would take out more taxes from her paycheck. Is your advice correct?
    A. Yes
    B. No

Answer 15

B. No

Question 16

16. The type of inventory performed on morphine in a hospital setting is a periodic check.
    A. True
    B. False

Answer 16

B. False - perpetual

Question 17

17. In hospitals, physicians are valuable because they produce revenue while pharmacy is considered an expense.
    A. True
    B. False

Answer 17

A. True

Question 18

18. You review the P&L report for this past month and noticed that the gross margin for sales was 26.5%. Sales for your pharmacy is determined by both OTC and RX. Your colleague who works at another company states that their gross margin is usually only 9%. Is the gross margin for your sales correct?
    A. Yes
    B. No

Answer 18

A. Yes

Question 19

19. Two ways to improve inventory turns are to increase sales and/or decrease inventory.
    A. True
    B. False

Answer 19

A. True

Question 20

20. Over the past 20 years, your investments have grown at 3.5% annually. Has your financial advisor who has been with you for these 20 years perform adequately?
    A. Yes
    B. No

Answer 20

B. No – 6-7% is an acceptable annual return

Question 21

21. Your inventory turns is 6.4. You want to improve your inventory turns. Therefore, you decide to check the quantity of prescription medications. Lipitor in the computer system is showing a quantity of 16 bottles onhand. The count on the pharmacy shelf shows 23 bottles. The order point in the computer system is set at 15. You are always running out of Lipitor and therefore, correct the onhand to 23 bottles of Lipitor and adjust the order point to 27. Have you acted correctly?
    A. Yes
    B. No

Answer 21

A. Yes

Question 22

22. Your supervisor wants to know how well you are managing the inventory in the pharmacy. He believes that you have too much rx inventory. You believe he is incorrect. If the monthly COGS sold= $525,000, monthly ending inventory=$721,000, and beginning inventory=$625,000, who is correct?
    A. Supervisor
    B. You

Answer 22

A. Supervisor

Question 23

23. “Liability” refers to any responsibility of a company, its owners, or employees.
    A. True
    B. False

Answer 23

A. True

Question 24

24. Companies such as CVS and Walgreens are at the maturity stage in their life cycle while Kmart/Sears is at the growth stage.
    A. True
    B. False

Answer 24

B. False

Question 25

25. You are a newly licensed pharmacist and part of your benefits package includes malpractice coverage by the employer. Do you need to obtain additional malpractice insurance?
    A. Yes
    B. No

Answer 25

A. Yes

Question 26

26. In the medication supply chain process, the plan sponsor can be an employer such as Walmart or Medicaid.
    A. True
    B. False

Answer 26

A. True

Question 27

27. The majority of the patients that your pharmacy serves is pediatric patients. Therefore, the appropriate rx medications to be constantly in stock must include but not limited to Ora-Pred Solution, Auralgan, Cortisporin Otic Solution, and Omnicef. Is this correct?
    A. Yes
    B. No

Answer 27

A. Yes

Question 28

28. Is this order correct?
MSContin 30 mg
Take 1 tab po q4h
#45
A.  True 	
B.  False

Answer 28

B. False - q12 hrs or TID

Question 29

29. You are the Pharmacy Manager for a large pharmacy chain. Your supervisor’s expectations for this fiscal year is that your P&L performance based on net profit is higher than the previous year. In 2011, your sales=$2,500,000, expenses= $2,000,000 and payroll is $300,000. In 2010, your sales=$2,700,000, expenses=$2,300,000, and payroll is $350,000.
    Did you have a better year in 2011 compared to 2010?
    A. Yes
    B. No

Answer 29

A. Yes

Question 30

30. Your supervisor determines that expenses are too high and wants you to target an expense that will make the greatest impact on profit. You review your P&L and determine that payroll is where you can make the greatest impact. Therefore, you decide to reduce four hours weekly for your staff pharmacist. Even with the pharmacist cut in hours, there is pharmacist coverage at all times. Is your strategy correct?
    A. Yes
    B. No

Answer 30

A. Yes

Question 31

31. You have just received the September P&L report. You notice that expenses are too high which in turn is affecting the bottom line. You decide that you can lower expenses in the following categories: payroll, supplies, advertising, and training. Is this strategy correct?
    A. Yes
    B. No

Answer 31

A. Yes

Question 32

32. You only have 8 FT tech employees and the average tech rate is $12.75 per hour and techs work 40 hours per week. Your pharmacy spent $4400 on payroll for tech pay this week. Will you be receiving a phone call from your supervisor concerning overtime?
    A. Yes
    B. No

Answer 32

B. No

Question 33

33. Pharmacy technician John has had numerous performance issues such as tardiness and fails to follow standard operating procedures. You have verbally coached him on these issues in the past but have not documented in writing. At evaluation time you rate him below standard and therefore John does not get a raise. Are you able to do this?
    A. Yes
    B. No

Answer 33

B. No

Question 34

34. It is that time of year again to evaluate employee performance. Your technician Jane’s evaluation is due to be completed on February 1st. However, due to an honest oversight on your part, the evaluation is not completed until February 2nd. Can you be fired for failure to complete evaluation in a timely manner?
    A. Yes
    B. No

Answer 34

A. Yes

Question 35

35. You are the Pharmacy Manager. It is evaluation time and this year your company has determined that the average raise will be 3%. You have an outstanding pharmacy technician and would like to reward the technician with a 10% raise. The tech is making $10 and with the raise will now make $11. Can you give the tech a 10% raise?
    A. Yes
    B. No

Answer 35

B. No

Question 36

36. Which of the following individuals is primarily responsible for ensuring a pharmacy is operated in compliance with current regulations?
A.  Lead Technician
B.  Pharmacist in charge
C. Chief Resident
D. District Supervisor

Answer 36

B. Pharmacist in charge

Question 37

37. Which of the following are necessary for every pharmacy to have?
    A. Drugs
    B. PIC
    C. Hot/Cold running water
    D. Refrigerator for refrigerated products
    E. All of the above

Answer 37

E. All of the above

Question 38

38. A patient complains that her co-pay for her brand medication Crestor has changed from $20 to $50. You explain that a possible reason is because her medication is now a preferred brand and hence the price increase.
    A. True
    B. False

Answer 38

B. False

Question 39

39. Product cost can be calculated using either AWP, AMP, WAC, or MAC.
    A. True
    B. False

Answer 39

A. True

Question 40

40. There will be times in processing a prescription order that a warning will flash on your computer software system that the drug is sold below cost. Do not process the order and notify your company’s third party team immediately so they can make the appropriate price adjustment.
    A. True
    B. False

Answer 40

A. True

Question 41

41. You are the Director of the Hospital Pharmacy. Amy is an outstanding candidate for a staff pharmacist position at your hospital. Her resume is extremely impressive having worked in hospital pharmacy for 15 years without any breaks in employment. She has also completed an ASHP accredited residency and has worked on numerous floors including cardiology, intensive care, and surgery. She is extremely flexible in the hours that she can work. You interview her and and her scores on the interview rank her the best of all 20 applicants. Reference checks have yet to be completed. She has an offer from another hospital which you have confirmed is true. She needs to know in one week since that is the timeline given by the other hospital.
    Should you offer her the job now?
    A. Yes
    B. No

Answer 41

B. No

Question 42

42. You would like to maintain your standard of living of 80% at a $100,000 income. You are retired, saved $1.3 million, and life expectancy is 20 years. Have you saved enough to afford this lifestyle?
    A. Yes
    B. No

Answer 42

B. No

Question 43

43. Jill, an hourly staff pharmacist, is scheduled to work from 8 am to 10 pm on Tuesday,
    Wednesday, Thursday, and Friday. Overtime is not an issue. Is this ok for Jill to work these
    hours in one week?
    A. Yes
    B. No

Answer 43

A. Yes

Question 44

44. The utilization of a secondary wholesaler for a pharmacy such as Target will benefit the net profit of the pharmacy.
    A. True
    B. False

Answer 44

B. False

Question 45

45. HEB and Walgreens are privately held companies and therefore do not have to answer to shareholders as compared to CVS and Walmart.
    A. True
    B. False

Answer 45

B. False - Walgreens is a public company also

Question 46

46. You are deciding whether to take Social Security payments early at 62 or wait until 70. Your family medical history is excellent. Everyone lives well into their 90s. Excluding all other factors, your decision is based solely on health reasons, therefore you decide to take the early payout at
47. Have you made the correct decision?
    A. Yes
    B. No

Answer 46

B. No – you get a lot more the later you wait to get SS

Question 47

47. You and your spouse earned more than $215,000 annually. You would like to purchase a new Porsche 911. In order to do so, you would need to pick up additional shifts to pay for the car. Your friend advises you not to pick up additional work because you would have to pay a tax rate of 33% instead of 28% on all your earnings. Is your friend correct?
    A. Yes
    B. No

Answer 47

B. No, 2015, Joint Filer 28%: $151,200 - $230,450

Question 48

48. Which of the following duties may a technician perform?
    I. Checking/Verification of prescriptions
    II. Scheduling of technicians
    III. Ordering Inventory

A. I only
B. III only
C. I and II only
D. II and III only
E. I, II, and III

Answer 48

D. II and III only

Question 49

49. In an inpatient hospital setting, what is the legal technician to pharmacist ratio?

A.  1:3
B.  3:1
C. 5:1
D. John 3:16
E.  No ratio limit

Answer 49

E. No ratio limit

Question 50

50. If a drug is listed as Tier 3, the co-pay is lower than Tier 1 and 2.
    A. True
    B. False

Answer 50

B. False

Question 51

51. Pharmacists will encounter numerous workplaces issues that require management and leadership skills in order to be successful.
    A. True
    B. False

Answer 51

A. True

Question 52

52. Congratulations! You are pregnant with your 3rd child (that goes for you too gentlemen). It comes as quite a surprise especially because you haven’t been able to save much money with the other two. After speaking with Human Resources, they inform you that you will qualify for FMLA and you will receive 12 weeks of paid, protected leave from your job. Is this true or false?
    A. True
    B. False

Answer 52

A. True