PTCB Pharmacy Business Math Practice Test

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| By Mary Kagchelland
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Mary Kagchelland
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Quizzes Created: 10 | Total Attempts: 64,119
Questions: 15 | Attempts: 3,481

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PTCB Pharmacy Business Math Practice Test - Quiz


Questions and Answers
  • 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 year
    Explanation
    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.

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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 company
    Explanation
    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.

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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 paid
    Explanation
    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.

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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 costs
    Explanation
    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.

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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 discount
    Explanation
    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.

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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. $27.50
    Explanation
    Formula: (Rx price - pharmacy drug cost)

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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. $15.10
    Explanation
    Formula: (Rx cost - pharmacy drug cost - dispensing cost)

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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. $27
    Explanation
    Since 10% is a percent you would add a decimal to the 10% when calculating in calculator. Ex) 10% ---- .10 (in calculator)

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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 turns
    Explanation
    Formula: (annual purchases / average inventory)

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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 turns
    Explanation
    Formula: (Sales + beginning inventory - ending inventory) / beginning inventory

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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. $4.55
    Explanation
    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.

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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. $13.1
    Explanation
    1 gram = 0.0352739619 ounces or 1 ounce = 30 grams

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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. $29.50
    Explanation
    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.

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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 profit
    Explanation
    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.

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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. $6.37
    Explanation
    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.

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  • Current Version
  • Nov 09, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jun 13, 2011
    Quiz Created by
    Mary Kagchelland
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