PTCB Pharmacy Inventory Management Study Guide Test.

PTCB Pharmacy Inventory Management Study Guide Test. 1. Average whole- sale price (AWP) A suggested price assigned to each drug listed in various published pricing guides. Insurance companies reimburse pharmacies based on the of the medication dispensed 2. Dispensing fee charge for the services provided by the pharmacy, including overhead expenses, salaries, equipment cost, and a selected profit margin 3. Expiration date length of time in which the medication retains optimal potency and stability 4. Formulary A list of preferred medications 5. Inventory turnover rate method for measuring the overall ettectiveness of purchasing and inventory control processes, equals total annual inventory purchases divided by cost of inventory on hand. 6. Invoice A bill of sale for products ordered 7. Markup The ditterence in price between the cost at which a business purchases a product and the price at which they sell it pharm selling price - pharm purchase price 8. New Drug Appli- cation (NDA) 9. Periodic auto- matic replace- ment (PAR) process by which new drugs are proposed to the Food and Drug Administration (FDA) for approval to market and sell in the United States The optimal amount of each item that should be stocked at any given time 10. Prime vendor The wholesaler from whom the pharmacy has committed to purchase the majority of its inventory 11. Purchase order (PO) A document used to purchase inventory containing information about the pharmacy, the ven- dor, and details about each of the products ordered 12. Rotating stock Moving the products