Inventory Flashcards
Back Order
An order placed for a product that is temporarily out of stock
Controlled Drugs
Any drug or therapeutic agent commonly understood to include narcotics, with a potential for abuse or addiction, which is held under strict government control, as delineated by the Comprehensive Drug Abuse Prevention & Control Act passed in 1970
COGS Cost of Goods Sold
A figure on the income statement that reflects the cost of products sold to consumers in the primary business activity of the practice
Damaged Goods
A good that is unfit or reduced in value for its intended use due to damage of some sort
EOQ Economic Order Quantity
The most economical quality of a product to order, factoring in both holding and operating costs
Efficiency Ratio for Accounts Payable to Sales
Ratios used to analyze how well a company uses its assets and liabilities internally
Expired Inventory
Inventory that has reached the end of its useful life, and cannot be sold as a finished good.
FIFO First In - First Out
The principle by which the oldest inventory items are recorded as sold first, but do not necessarily mean that the exact oldest physical object has been tracked and sold
Inventory Audit
An accounting procedure used to keep track of products and merchandise
Inventory Turnover
The relationship between expense of total items sold and the inventory value, computed by dividing the costs of the drugs and the dispensed items by the average inventory value
Mark-up
The amount added to the cost price of goods to cover overhead and profit
Online Pharmacy
a pharmacy that operates over the internet and sends the orders to customers through the mail or shipping companies
Overstock
A supply or quantity in excess of demand or requirements
Pharmacy
A store where medicinal drugs are dispensed and sold
QOH Quantity on Hand
Total number of inventory units currently in stock
Shrinkage
Inventory loss, usually unexplained or difficult to isolate
Special Orders
Patient medications or food that is ordered by a client, typically because it is not kept in stock on a regular basis
Unit of Measure - or - buy/sell ratio
This is assigned to all inventory items and must be defined before a product can be entered into inventory. Each product will have a stocking unit of measure, sales ordering unit of measure and a purchasing unit of measure.
Volume Purchasing
The act of purchasing goods in multiple units or in large quantities, usually with a financial incentive for doing so.
Procurement
The act of obtaining or buying goods
Supply and Demand
The relationship between the product availability and the need of the consumer to purchase it
Inventory
all goods owned and held for sale or use in the regular course of business
Replacement Costs
The price that will have to be paid to replace an existing inventory asset with the same or similar product
Inventory Control
Optimal inventory control ensures that frequently used items are always available and that return on investment for carrying and managing inventory is at the highest possible level
The process whereby the need to maintain sufficient inventory to meet operating demands is weighed against the monetary cost of carrying the inventory.