Term
| What is the formula for calculating the cost of dispensing a prescription? |
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Definition
| Total expenses allocated to dispensing prescriptions/number of prescriptions dispensed |
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Term
| computers, advertising for company as a whole, security, owner's salary not already accounted for, and all other expenses are allocated how based on finding out the cost of dispensing? |
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Definition
| multiply by (rx sales/total sales) |
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Term
| Rent and utilities would be allocated how based on finding out the cost of dispensing? |
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Definition
| (rent expense + utilities expense) * (rx sq ft/total sq ft) |
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Term
| How would one find the amount of an employees salary to allocate to the rx dept |
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Definition
| multiply by % of work time spent in rx dept, ex: they spend 70% of time in rx dept, so multiply salary by 0.7 |
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Term
| prescription containers, professional licenses and books for rx, rx based travel, and dry cleaning for rx personel are all examples of expenses allocated how when calculating the cost of dispensing? |
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Definition
| 100% allocated to the rx dept |
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Term
| salaries allocated for rx services, salaries for delivery services related to rx, expenses allocated directly to rx dept, expenses allocated to rx dept based on sq ft %, and expenses allocated by rx sales % all add up to give you what? |
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Definition
Total expenses allocated to dispensing prescriptions
(note: this divided by the total # of prescriptions dispensed gives you the cost of dispensing a single prescription) |
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Term
| the movement of cash into and out of a business is known as what? |
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Definition
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Term
| cash inflow can come from? |
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Definition
| cash sales, accounts receivable |
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Term
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Definition
| inventory purchases, expenses, and puchase of fixed assets |
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Term
| cash in, cash out, and net cash flow are the 3 components of what? |
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Definition
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Term
| failure to raise prices with increasing wholesale costs, bad debt, collection costs, carrying costs, theft, and obsolescence/damage all lead to what? |
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Definition
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Term
| failure to raise prices based on increased wholesale costs creates what specific problem relating to cash shrinkage? |
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Definition
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Term
| which statement sheet is most similar to your check book balance? |
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Definition
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Term
depreciation, bad debt, and profit are all on which?
the income statement
the cash flow statement
both |
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Definition
| the income statement only |
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Term
| What bad thing often happens to a business when it grows too rapidly? |
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Definition
| too much cash can become tied up because cash flow is not adequate even though sales are increasing |
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Term
| Anticipating cash shortages(meaning you might need a loan) or surpluses(meaning you should invest) can be done using what? |
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Definition
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Term
| The pharmacy's marginal income ratio is 15%. The cash discount on $300,000 of purchases is 2%. The value of this discount is equivalent to _____ in retail sales. |
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Definition
$40,000
300,000 * 0.02 = 6,000
6000/0.15 = 40,000 |
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Term
| The monthly purchase budget is adjusted each month based on the previous month's what? |
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Definition
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Term
| Projected sales were $90,000 but actual sales were only $80,000 in a month. If the cost of goods sold is 75%, the adjustment for the next month's purchase budget would be what? |
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Definition
-$7,500
10,000 difference in retail sales * 0.75 for the % of this which is the actual cost of the goods sold = 7,500 which is how much we need to decrease the purchases |
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Term
| A serial discount of 40, 15, and 2 is equivalent to a single discount of 57%. True or False |
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Definition
False, as you DO NOT simply add them
Using $100 as an example
100 * 0.4 = 40 in trade discount
(100 - 40 = 60)
60 * 0.15 = 9 in quantity discount
(60 - 9 = 51)
51 * 0.02 = 1.02 in cash discount
(51 - 1.02 = 49.98)
Final cost was $49.98, which is an overall 50.02% discount. |
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Term
| The term deal is associated with what kind of discount? |
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Definition
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Term
| A pharmacist uses 250 tablets a week and pays $15 per bottle of 100. Would it be advantageous to purchase in bottles of 1,000 for $140? |
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Definition
yes based on 0.5% to 1% carrying cost/week
15 * 2.5 = $37.5 cost/week
37.5 * 0.005 = 0.18
37.5 * 0.01 = .37 so .18 to .37/week carrying cost
140/4 = $35 cost/week which is a $2.50 discount
140 * 0.005 = 0.7 and 140 * 0.01 = 1.4 so 0.70 to 1.40 carrying cost for a week
The $2.50 discount is greater than the $0.70 to $1.40 carrying cost, so take the deal. |
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Term
| Buying in dozen lots, a pharmacist pays (cost of goods) $200 and this dozen generates a net profit of $10. If the turnover of this dozen is 6, the return on investment is what? |
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Definition
30%
6 * 10 = 60 profit
60 in profit/200 invested = 0.3 or 30% which is the ROI |
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Term
| A discount deducted from a "list" price is known as a _____ discount. |
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Definition
trade
these are based on getting a discount for what type of business you are; retail vs wholesale |
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Term
| Are utilities a variable expense? |
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Definition
| no, they are fixed because they do not vary with sales |
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Term
| Are employee wages, bad debts, and advertising considered variable or fixed expenses? |
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Definition
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Term
| If gross margin is 25% of sales and variable expenses are 10% of sales, the marginal income ratio is what % of sales? |
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Definition
15%
MIR = %gross margin - %variable expenses |
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Term
| This represents the amount of sales left to cover fixed expenses and net profit, if any. |
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Definition
| Marginal Income Ratio (MIR) |
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Term
| The marginal income ratio represents the amount of sales left to cover variable expenses and net profit. True or False |
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Definition
False, it's fixed income and net profit
MIR = %GM - %VE |
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Term
| Utilities expense is allocated to the rx dept based on the ratio of rx sales to total sales. True or False |
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Definition
| false, it is based on (rx sq ft/total sq ft) |
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Term
| Beyond the breakeven point all sales are reduced by cost of goods sold. The remainder is net profit. True or False |
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Definition
| False, after the breakeven point all sales at retail are reduced by cost of goods sold + variable expenses, then the remainder is net profit |
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Term
| Rent expense is allocated to the prescription dept based on prescription sales to total sales. True or False |
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Definition
| false, it's allocated to (rx sq ft/total sq ft) |
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Term
| The sales forecast, collections(cash in), cash payments(cash out), and cash balance make up what? |
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Definition
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Term
| The point in terms of sales or months when no profit or loss is realized. |
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Definition
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Term
| Making year to year financial analysis comparisons and determining additional sales needed to pay for new expenditures are 2 critical uses of the what? |
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Definition
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Term
| Variable expenses vary when what varies? |
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Definition
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Term
| On the breakeven analysis graph, where is the breakeven point? |
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Definition
| where gross margin crosses total expenses |
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Term
|
Definition
|
|
Term
| gross margin - (variable expenses + fixed expenses) = |
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Definition
|
|
Term
| total expense - variable expense = |
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Definition
|
|
Term
| fixed expenses/marginal income ratio = |
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Definition
| sales at break even point |
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Term
| marginal income ratio * sales at break even point = |
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Definition
|
|
Term
| on breakeven graph when profit = 0 what has occured? |
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Definition
|
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Term
|
Definition
| sales (at breakeven point) |
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Term
|
Definition
fixed expense + profit
unless you are at the break even point, in which
sales = fixed expense/MIR |
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Term
| The cash discount is usually |
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Definition
|
|
Term
| 2/10 means what relating to a discount? |
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Definition
| 2% discount if paid within 10 days |
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Term
| N/30 means what related to a discount? |
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Definition
| the net(full) amount is due in 30 days |
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Term
2/10, N/30 is equivalent to what %APR?
Is this worth borrowing to get the cash discount? |
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Definition
paid 20 days early, so 360/20 = 18 separate 20 day periods, so 18 * 2% = 36%
yes borrow the money |
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Term
| 1/8, N/25 is equivalent to what %APR? Is it worth borrowing to get the cash discount? |
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Definition
| paid 17 days early, so 365/17 = 21.47 separate 17 day periods in a year, so 21.47 * 1% = 24.17% APR It would likely be worth borrowing cash to get the discount. |
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Term
| The Robinson-Patman Act prohibits what? |
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Definition
| price discrimination unless justified by savings on shipping and processing |
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Term
| A quantity discount is also known as a what? |
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Definition
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Term
| When should a 'deal' be purchased? |
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Definition
| when the turnover is at least 3, and the return on investment is at least 35% |
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Term
| By the end of the fiscal year the unused inventory is only worth about what percent of its original value? |
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Definition
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Term
| What is the average inventory carrying cost in %/week? |
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Definition
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Term
| Term for more than one, or combined discounts. |
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Definition
|
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Term
| functional discount, or amount deducted from "list" price |
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Definition
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Term
| What worksheet helps you modify inventory levels to more desirable levels? |
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Definition
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Term
| This represents the greatest investment in a community pharmacy operation. |
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Definition
|
|
Term
| open to buy budget is based on what? |
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Definition
| previous month's sales and purchases |
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Term
| In the open to buy budget, the inventory we need to purchase at cost to replace our expected sales is |
|
Definition
the Unadjusted Purchase Budget
(expected sales * %COGS) |
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Term
| If, in the open to buy budget, you wanted to lower the purchase budget for the year by $24,000, how would you do this? |
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Definition
| Calculate the worksheet like normal, except lower each month's adjusted purchase budget by $2,000, so that 2,000 multiplied by 12 spreads out the 24,000 over the entire year. |
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Term
| When looking at the open to buy budget you see that the projected sales for January were $10,000 less than expected, and the average COGS percentage has been 70%. Also, the actual purchases were $5,000 less than the adjusted purchase budget for January. What would be the net adjustment to the purchase budget for February? |
|
Definition
-$2,000
10,000 * 0.70 = -7,000 adj for low sales
Difference in actual purchases and adjusted purchase budget leaves you with +5,000.
-7,000 + 5,000 = -2,000 |
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Term
| Protect employees on basis of race, color, religion, sex, national origin, age, pregnancy, and disability. |
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Definition
| Federal anti-descrimination laws |
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Term
| Title VII Civil Rights Act of 1974 applies to what types of businesses? |
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Definition
| public and private businesses with 15+ employees, although lower if state law says |
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Term
| The Age Discrimination in Employment Act of 1967 (ADEA) requires how many employees? Public or Private? |
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Definition
| public or private business with 20+ employees (federal law), state might be stricter |
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Term
| Pregnancy Discrimination Act of 1978 states companies must have how many employees? Public or private? |
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Definition
| public and private, and 5+ employees as long as state law is not more strict |
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Term
| How many employees must a company have to fall under the Americans with Disabilities Act? |
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Definition
| 15+ unless state law is stricter, this too is for public or private business |
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Term
| Who enforces federal anti-discrimination laws? |
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Definition
| The Equal Employment Opportunity Commission (EEOC) |
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Term
| What are the 4 enforcement steps for violation of anti-discrimination laws? |
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Definition
1. investigate charge
2. negotiated settlement
3. criminal court
4. civil court (individual vs company) |
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Term
| What refers to the fact that treating all people the same does not guarantee the results will be the same? |
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Definition
| unequal impact under Title VII |
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Term
| Applying different standards to different employees within a protected class/category. |
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Definition
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Term
| Title VII protects against what 2 main things? |
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Definition
| unequal treatment, unequal impact |
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Term
| A pharmacy will not hire an 18 year old, and likes to hire older people. Does the young person have any way of legal recourse? |
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Definition
| no, only people over 40 are protected under ADEA (age discrimination in employment act) |
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Term
| Discrimination that is based on a legitamate business need, such as hiring and promoting a qualified applicant over an unqualified applicant, is illegal. True or False |
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Definition
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Term
| A female is fired after repeated incidents of refusing to work overtime. If filing a claim under Title VII for unequal treatment she must prove what? |
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Definition
| She must prove that male workers who refused to work overtime were not disciplined, as this would prove the company applied a different set of standards to different employees within a protected class/category. |
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Term
| A female is repeatedly disciplined and eventually fired from her job based on repeatedly refusing to work overtime. To have a case under Title VII proving unequal impact, what must she do? |
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Definition
| She must prove that the policy (discipline for failure to work overtime) has resulted in more female workers being disciplined than male workers, as this would prove that even in the company treating all people the same, it did not guarantee the results would be the same. |
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Term
| Customer preference for a particular religion can qualify as a bonafide occupational qualification (BFOQ). True or False |
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Definition
| False, customer preference never qualifies for BFOQ |
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Term
| When a job requirement is challenged, who must prove the requirement is truly necessary? |
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Definition
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|
Term
| Employees can expect privacy in desks, offices, and storage lockers only if |
|
Definition
| the areas are locked, and the employer did not gain prior consent to search locked areas |
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Term
| Kate is applying for a pharmacy staff position at a local hospital. Can they legally require Kate to take a polygraph test? |
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Definition
| yes, because it is for a hospital pharmacy job which handles controlled substances, thereby exempting it from the employee polygraph protection act of 1998 |
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Term
| What types of employers cannot use polygraph tests on potential employees? |
|
Definition
private employers, unless they have one of these 3 circumstances
1. on going theft investigation
2. are a security firm
3. handle controlled substances |
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Term
| What should employers do if they want the full right to search an employee's locked area? |
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Definition
| make a right to search policy, and get written consent |
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Term
| When running a background investigation on a potential employee what is the rule of thumb? |
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Definition
| limit access to a need to know basis |
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Term
| Shortly after a pharmacist is hired at a hospital, drugs start disappearing. The employer searches the employee's unlocked office and desk. Is this legal of the employer? |
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Definition
| yes, the areas were unlocked, and in the private work sector |
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Term
| Between the U.S. Constitution, most state constitutions, and the GA State Constitution, which ones mention employee privacy in the private sector? |
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Definition
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Term
| The 4th amendment guarantees privacy and prohibits unreasonable searches and seizures by who? |
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Definition
| the government (so this mainly applies to people working in the public sector) |
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Term
| The candidates interview for a job, and the more qualified one is HIV+. Can this HIV+ status be used to not hire the candidate? Based on what law? |
|
Definition
| no, American with Disabilities Act |
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Term
| What is it called when a potential employer wants info, but a former employer fears a defamation lawsuit? |
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Definition
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Term
| Is it illegal if a potential employer rejects a potential employee based on false information gathered? |
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Definition
| yes, it is critical that a potential employer gather very accurate info |
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Term
| In invasion of privacy cases within the private sector, does the court usually side with the employee or employer? |
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Definition
| employer, since the property is theirs, and as long as they didn't search through locked employee property without permission |
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Term
| Hiring people based on height or a physical requirement could result in violation of what part of Title VII if not proven necessary for the job? |
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Definition
unequal impact
ex: if hire based on height, then women would naturally be discriminated against compared to men |
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Term
| If, when assessing candidates for a job position you happen to form either a positive or negative biased opinion of the candidate, what should you do to correct this? |
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Definition
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|
Term
| Reference checking is most useful when? |
|
Definition
|
|
Term
| Which job applicants should initially be eliminated? |
|
Definition
| those not meeting the technical requirements |
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Term
| During interviewing a job candidate, when should you tell the applicant the specifics about the job requirements and duties? |
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Definition
| after you've asked your interview questions, but before the applicant asks theirs |
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Term
| During a job interview, the job applicant should be allowed to ask their questions when? |
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Definition
| after they are informed about the job and company |
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Term
| Tell me about a time you had to deal with an angry customer. What did you do to calm the customer? How did it work out? These 3 questions together demonstrate what? |
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Definition
The E.A.R. Technique
Ask for Example Action Result |
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Term
| Even the best job applicant should not be given a job offer in the first interview. True or False |
|
Definition
|
|
Term
| Most hiring decisions are made how soon once the job interview starts? |
|
Definition
|
|
Term
| What is step 1 in the interviewing and hiring process? |
|
Definition
| establish responsibilities of the job |
|
|
Term
| What is step 2 of the interviewing and hiring process? |
|
Definition
| establish applicant requirements |
|
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Term
| Arbitrary technical job requirements should not be added because they can lead to what? |
|
Definition
| unequal impact in protected group |
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Term
| What is the best indicator of a person's future behavior? |
|
Definition
|
|
Term
List these interview steps in the correct order.
1. conversational opening
2. tell applicant about job and co.
3. ask interview questions
4. set the agenda
5. tell applicant what happens next
6. allow applicant to ask questions |
|
Definition
1,4,3,2,6,5
1. conversational opening
4. set the agenda
3. ask interview questions
2. tell applicant about the job and co.
6. allow applicant to ask questions
5. tell applicant what happens next |
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|
Term
| What is the last step of the interviewing and hiring process? |
|
Definition
|
|
Term
| Who is the best reference? |
|
Definition
| supervisor of a long time period |
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|
Term
| When all is said and done in the interview and hiring process, who do you hire? |
|
Definition
| the one with the highest rating in the evaluation matrix |
|
|
Term
| A behavior problem involving willful disregard for rules, regulations, and policies. |
|
Definition
|
|
Term
| Behavior problem involving quality of work. |
|
Definition
|
|
Term
| Problems of conduct can be helped by giving additional pay. True or False |
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Definition
| False, motivational techniques are more for quality based behavioral problems. Providing an employee handbook would be a better option here. |
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Term
| The work itself, responsibility, advancement, growth, and recognition are all considered motivator or hygiene factors? |
|
Definition
|
|
Term
| salary, co-workers, supervision, company policies, and working conditions are all motivators or hygiene factors? |
|
Definition
|
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Term
| What is at the base of the Hierarchy of Needs Theory pyramid? The top? |
|
Definition
security, self-fulfillment
from the base it goes: security, belonging, self-esteem, independence, self-fulfillment |
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Term
| When motivation fails to correct an employee's performance problem what should be used? |
|
Definition
| The formal corrective interview |
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|
Term
| What should be used when an employee has conduct problems? |
|
Definition
steps of progressive discipline
counseling, oral warning, written warning, suspension(or 2nd written warning), discharge |
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|
Term
| What % of females claim to have been sexually harassed by males at work? What % of males? |
|
Definition
|
|
Term
| Male workers who were harassed, were harassed by what % female and what % male? |
|
Definition
|
|
Term
| What group of co-worker was the most common harasser of women? |
|
Definition
| supervisors at 44%, followed by seniors at 28% |
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Term
| Since voluntary does not mean welcome, what does the court look for when resolving a case over office romance? |
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Definition
| if relationship was solicited, desired, or encouraged |
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Term
| Office romances between supervisors and subordinates often leads to what? |
|
Definition
|
|
Term
| What % of female pharmacists claim to have been harassed at work? |
|
Definition
|
|
Term
| Who were the main harassers of female pharmacists? |
|
Definition
| evenly split between colleagues, patients, and supervisors |
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