Flashcards in Chapter 19 - Review Questions Deck (24):
What is inventory?
Inventory is the quantity of goods present in the veterinary facility.
Name the 5 principles used to control expenses.
1. Develop a budget
2. Keep abreast of expenses on a regular basis
3. Once a system has been put in place, keep it active
4. Budget analysis should mirror the practice’s philosophy
5. Analyzing expenses provides a comprehensive view of the condition of the practice and helps shape its future endeavors.
When dealing with inventory, it is crucial to remember that time is ...
What is turnover?
The number of times a product is used and
replenished each year.
Calculate the turnover rate by using the following information: Yearly inventory expense = $125,000; average cost of inventory on hand = $31,250.
Calculate the average cost of inventory on hand by using the following information: Year's beginning inventory = $75,000; year's ending inventory = $130,000.
Name two objectives of an inventory control system.
1. Make sure items are on hand when needed
2. Minimize the expense of keeping items in stock
What is a packing slip?
A packing slip is found in the carton in which
freight is shipped. It documents how many of
each item is shipped. It may or may not include the prices of the item(s), although most commonly it does not.
What is an invoice?
An invoice is documentation of an order
shipped to the veterinary hospital. It may or
may not accompany the packing slip in the
What is a statement?
A statement is most commonly mailed to the
veterinary practice. It documents the items
received by the hospital and the amount due on account. Commonly, it must be paid within 30 days so that no late fees are incurred by the business.
What is the reorder point?
The point at which a product is allowed to be sold or used in-house before new product is ordered.
Why is recording the expiration date and serial number for rabies vaccine so important?
This number is included on the rabies
certificate given to the client; also, rabies is a zoonotic disease, and the veterinarian must
account for the expiration date of the vaccine and the serial number.
Once the reorder point is reached, a basic rule of thumb is to order a ...-month supply.
List some rules for filling out a DEA form.
- All information on the form must be correct
- No cross outs are allowed
- No liquid correction
- Fluid or tape can be used
- Must have correct spelling
- Must have correct drug strength
- Must have the veterinarian’s signature on the form
Time = Money
A mean turnover rate of ... is acceptable for most veterinary practices.
Inventory should be placed on pharmacy shelves in such a way so as to ensure ...
DEA forms are issued by ...
the federal government.
An item may be placed on backorder just because the pharmaceutical company is changing the color of the drug's label.
The price a veterinary hospital pays for an item is known as ..., and the amount the hospital sells the item to a client for is known as ... price.
The expiration date and the serial number of rabies vaccine administered must be recorded on each pet's rabies certificate.
Delayed billing has no perks for a veterinary practice owner.
When a shipment arrives at a veterinary hospital, if the delivery carton appears to be damaged, the ICM does not have to accept the shipment from the carrier.