PTCB Pharmacy Business Math Practice Test
- 1.
What does the term turnover rate mean?
- A.
Number of times a certain medication is being reordered and stocked in 2 years
- B.
Number of times a certain medication is being returned to manufacturer in one year
- C.
Number of times inventory has been replaced in one year
Correct Answer
C. Number of times inventory has been replaced in one yearExplanation
If a certain medication or product has been sitting on the shelf for a long time then it is costing the pharmacy money which it's not a good thing. A good turnover rate is 4 or more.Rate this question:
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- 2.
What does the term formulary mean?
- A.
A list of preferred drugs to be stocked by the pharmacy, also a list of drugs covered by an insurance company
- B.
A list of preferred drugs to be stocked by the pharmacy, also a list of drugs covered by an manufacturer company
- C.
A list of only brand name drugs to be stocked by the pharmacy, also a list of drugs covered by an insurance company
Correct Answer
A. A list of preferred drugs to be stocked by the pHarmacy, also a list of drugs covered by an insurance companyExplanation
Many formulary drugs are generics. Also common drugs are listed in the formulary list. These drugs must meet certain requirements to be included in the list such as cost and effectiveness.Rate this question:
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- 3.
What does the term gross profit mean?
- A.
Profit that has been made by selling a product a little more than what the company actually paid
- B.
Total annual profit that was made by selling products
- C.
Profit that the company lost during selling the products
Correct Answer
A. Profit that has been made by selling a product a little more than what the company actually paidExplanation
Gross profit refers to the profit that a company earns by selling a product for a price that is slightly higher than the cost of producing that product. It is the difference between the revenue generated from sales and the cost of goods sold. It does not take into account other expenses such as operating expenses or taxes.Rate this question:
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- 4.
What does the term net profit mean?
- A.
Product selling price that is substracted by all dispensing costs
- B.
Product selling price that is multiplied by all dispensing cost
- C.
Product selling price that is divided by all dispensing cost
Correct Answer
A. Product selling price that is substracted by all dispensing costsExplanation
Net profit refers to the amount of money earned by a company after deducting all expenses and costs associated with producing and selling a product. In this case, the correct answer states that net profit is calculated by subtracting all dispensing costs from the product selling price. This means that the expenses incurred in the process of selling the product are subtracted from the revenue generated from selling the product, resulting in the net profit.Rate this question:
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- 5.
What does the term average wholesale price (AWP) mean?
- A.
Average price charged by pharmacies for a product, and most offer a discount
- B.
Average price charged by manufacturers for a product, and most offer a discount
- C.
Average price charged by wholesalers for a product, and most offer a discount
Correct Answer
C. Average price charged by wholesalers for a product, and most offer a discountExplanation
The term average wholesale price (AWP) refers to the average price charged by wholesalers for a product. This means that wholesalers, who buy products in bulk from manufacturers, sell them to pharmacies at an average price. It is common for wholesalers to offer a discount on this price, making it more affordable for pharmacies.Rate this question:
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- 6.
Drug A 40mg, quantity #100 costs the pharmacy $14.50. The prescription price is $42.00. What is the gross profit?
- A.
$2.73
- B.
$27.05
- C.
$27.50
Correct Answer
C. $27.50Explanation
Formula: (Rx price - pharmacy drug cost)Rate this question:
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- 7.
Drug A 40mg, quantity #100 costs the pharmacy $14.50. Dispencing cost for this prescription total is $12.40. The prescription price is $42.00. What is the net profit?
- A.
$15.00
- B.
$15.10
- C.
$15.01
Correct Answer
B. $15.10Explanation
Formula: (Rx cost - pharmacy drug cost - dispensing cost)Rate this question:
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- 8.
Prescription cost is $30.00. The patient has a 10% prescription discount coupon. How much will she pay after discount has been deducted?
- A.
$27
- B.
$20
- C.
$25
Correct Answer
A. $27Explanation
Since 10% is a percent you would add a decimal to the 10% when calculating in calculator. Ex) 10% ---- .10 (in calculator)Rate this question:
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- 9.
A pharmacy maintains an average inventory of $32,000. The annual purchases total $200,000. What is the turnover rate?
- A.
6.20 turns
- B.
6 turns
- C.
6.25 turns
Correct Answer
C. 6.25 turnsExplanation
Formula: (annual purchases / average inventory)Rate this question:
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- 10.
Pharmacy Goods has a total of $423,400 sales. Beginning inventory total cost was $105,850 and ending total cost was $127,020. What is the turnover rate?
- A.
3.8 turns
- B.
4 turns
- C.
3.9 turns
Correct Answer
A. 3.8 turnsExplanation
Formula: (Sales + beginning inventory - ending inventory) / beginning inventoryRate this question:
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- 11.
What price do we charge a patient if the AWP for 300 tablets is $14.55 and we want to give the patient 30 tablets plus a 6% markup and a $3.00 dispensing fee?
- A.
$5.55
- B.
$4.55
- C.
$4.00
Correct Answer
B. $4.55Explanation
The price charged to the patient is $4.55. This is calculated by taking the AWP for 30 tablets, which is $14.55/300 * 30 = $1.455. Then, a 6% markup is added, which is $1.455 * 0.06 = $0.0873. Finally, the $3.00 dispensing fee is added, resulting in a total price of $1.455 + $0.0873 + $3.00 = $4.55.Rate this question:
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- 12.
Rx Order: Triamcinolone 2% 60 grams, AWP: $30.00 for 8 ounces of Triamcinolone 2%, Markup: 8%, Dispensing fee: $5.00 How much will we charge the patient?
- A.
$13.1
- B.
$12.00
- C.
$12.70
Correct Answer
A. $13.1Explanation
1 gram = 0.0352739619 ounces or 1 ounce = 30 gramsRate this question:
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- 13.
Drug B 100mg, quantity #30 costs the pharmacy $15.50. The prescription price is $45.00. What is the gross profit?
- A.
$30.00
- B.
$29.50
- C.
$29.05
Correct Answer
B. $29.50Explanation
The gross profit can be calculated by subtracting the cost from the prescription price. In this case, the cost of Drug B 100mg, quantity #30 is $15.50 and the prescription price is $45.00. Therefore, the gross profit is $45.00 - $15.50 = $29.50.Rate this question:
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- 14.
What does the term markup mean?
- A.
Amount added to the cost of goods to cover insurance
- B.
Amount added to the cost of goods to cover overhead and profit
- C.
Amount substracted to the cost of goods to cover overhead and profit
Correct Answer
B. Amount added to the cost of goods to cover overhead and profitExplanation
Markup refers to the amount added to the cost of goods in order to cover overhead expenses and generate profit. It is a common practice in business to include a markup on the cost of goods in order to ensure that all expenses are covered and to create a profit margin. By adding a markup, businesses can ensure that they are able to cover their operating costs and generate income.Rate this question:
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- 15.
What price do we charge a patient if the AWP for 1000 tablets is $45.00 and we want to give the patient 90 tablets plus a 8% markup with a dispensing fee of $2.00?
- A.
$6.13
- B.
$6.00
- C.
$6.37
Correct Answer
C. $6.37Explanation
The price charged to the patient can be calculated by first finding the cost of 90 tablets with an 8% markup. The cost of 1000 tablets at $45.00 gives a cost per tablet of $0.045. Adding an 8% markup to this gives a cost per tablet of $0.0486. Multiplying this by 90 tablets gives a total cost of $4.374. Adding the dispensing fee of $2.00 to this gives a final price of $6.374, which can be rounded to $6.37.Rate this question:
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Nov 09, 2023Quiz Edited by
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Jun 13, 2011Quiz Created by
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