Session 11 Quiz Flashcards
(39 cards)
Inventory Control is defined as the process whereby the need to maintain sufficient inventory to meet ________ is weighed against the monetary cost of carrying the inventory.
Operating demands
List four inventory control goals (Out of 10).
- Products are available to treat patients when needed.
- Quantities are controlled to minimize expenses.
- Clients can conveniently obtain refills.
- Regular evaluation of preferred pharmaceuticals and supplies to avoid redundancy, streamline storage, ordering and training.
- Employees can efficiently order, stock and dispense needed items.
- Controlled drugs are properly maintained.
- Appropriate security, systems, and safeguards exist to ensure proper use.
- Employees are well versed in communicating the value of products dispensed at the practice and can also confidently field client inquiries regarding on-line pharmacies or big box stores.
- Fees are adjusted regularly.
- Profit margins are set and accomplished.
Combined ordering and holding costs account for approximately what precent of total true cost?
25-35%
When items are received and are immediately added to the inventory record, and items sold are immediately subtracted from the inventory record, it is called a ________ Inventory System.
Perpetual
Define gross profit on product.
The difference between the price of a product to the client and the cost of that product to the practice.
What are the two main benefits of using a Central Supply Inventory System?
Reduce theft and waste, and better organization and tracking of products.
The ABC Inventory Analysis contains multiple steps and can be somewhat complex - if you had to define the ABC analysis in 5 steps, what would those steps be?
- Create a spreadsheet and calculate Annual Usage Volume.
- Then calculate cumulative Annual Usage Volume.
- Then calculate the Cumulative Percentage of Annual Usage Volume.
- Then calculate the Annual Usage Distribution.
- Group items into classes, A B and C.
The same of the beginning inventory (BI) and the ending inventory (EI) divided by 2 is the calculation to determine what metric (BI + EI)/2?
Average Inventory on Hand (AI)
The higher the inventory turnover ratio, the _______ the inventory control.
Tighter
What mathematical formula, that recognized three specific costs including unit cost, ordering cost, and holding cost, allows calculation of ideal inventory ordering?
Economic Order Quantity (EOQ)
Regarding Mark-up and Margin pricing structures, which is a useful strategy to use where there are large differences in the end resulting price based on the size of the patient?
Margin pricing method
Which category of drugs is likely to have a higher mark-up; competitive drugs or drugs used to treat chronic conditions?
Drugs used to treat chronic conditions
Itemizing the various fees potentially associated with dispensing medication (labeling, dispensing minimum etc) on the client invoice helps improve perceived value of the medication. True or False?
False. Clients do not have a complete understanding or appreciation of the costs associated with dispensing medications.
Calculate the inventory variance using the following data:
Beginning quantity = 250
Amount ordered and received = 1000
Amount sold = 942
Physical count of quantity on hand = 298
Variance = ________________.
(10)
What benefits and disadvantages may be involved in Just in Time ordering?
a. Benefits - low holding costs, no expired product.
b. Disadvantages - high ordering costs, stock outs and back orders.
What are the two main inventory organizational techniques?
Zoning and Central Supply
What are the four steps to Inventory Budgeting?
- Project Revenue
- Project COG Expense
- Project COG Subsection Expenses
- Share the Budget and Communication Expectations
A running capitol inventory list should contain what information about the equipment?
a. Equipment name
b. Manufacturer
c. Mode/serial number
d. Purchase date, amount paid, and purchase location
Using the metrics below; what is the break-even number for a potential Laser machine purchase;
Purchase price $25,000
Client cost $65
Technician time to perform the service $15
500 invoiced uses to break-even
What is the most significant drawback to paper medical records and why?
Poor legibility which can lead to patient care mistakes and confusion. Illegible records will also likely work against the practice if ever needed in a court case.
The practice purchased a digital radiology unit for $35,000. Shipping charges were $2,525. Installation and training costs were $2,750. The practice is planning on the equipment serving them for a minimum of 10 years. Using the formula for calculating equipment expense for profit center use, what is the estimated monthly expense you can subtract from the profit center?
a. $731.25
b. $602.50
c. $4,027
d. $335.62
d. $335.62
How do you make a typo or mistake correction on a paper medical record?
In the case of a written mistake, correction fluid cannot be used on any medical record, release or authorization form. A correction should consist of a one line strike through with the author’s initials.
Electronic medical records should have an automatic _______ time frame after back up has been completed and any following entries to the record will be documented as an addendum
Software should have an automatic lock out time frame after a backup has been completed. Entries post back-up will be documented as an addendum.
Name three examples of license board violations regarding medical records (7 options)
- Lack of complete patient and client identification.
- Lack of complete system-by-system description with annotated exam notes.
- Lack of tentative diagnosis.
- Lack of prognosis.
- Lack of treatment specified and especially lack of clients waiver or denial of recommendations for a specific treatment or procedure.
- Illegible entries.
- Alterations or deletions of record after a reasonable contemporaneous period.
