Question

overhead
depreciation
markup percentage
awp
reimbursement

cost of doing business and includes all costs for the pharmacy
the rate representing the decrease in value of an asset (equipment, computers, automatic dispensing machines) over time
calculate by dividing the markup by the cost and then multiplying by 100
average wholesale price; based on the national average cost of medications
insurance companies provide reimbursements to pharmacies

Explanation:

Match Overhead definition

Using the Pharmacy Financial Metrics knowledge point

• Overhead represents the overall cost of running a business, which includes all operational costs for the pharmacy (such as rent, utilities, and salaries) that are not directly tied to purchasing inventory.
• This matches: "Cost of doing business and includes all costs for the pharmacy".

Match Depreciation definition

Using the Pharmacy Financial Metrics knowledge point

• Depreciation is the accounting method used to allocate the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up.
• This matches: "The rate representing the decrease in value of an asset (equipment, computers, automatic dispensing machines) over time".

Match Markup percentage definition

Using the Markup and Profit Margin knowledge point

• Markup percentage is calculated by dividing the markup (selling price minus cost) by the cost of the item, and then multiplying by 100 to express it as a percentage.
• This matches: "Calculate by dividing the markup by the cost and then multiplying by 100".

Match AWP definition

Using the Average Wholesale Price knowledge point

• AWP stands for Average Wholesale Price, which is a benchmark price representing the national average cost of medications.
• This matches: "Average wholesale price; based on the national average cost of medications".

Match Reimbursement definition

Using the Pharmacy Financial Metrics knowledge point

• Reimbursement refers to the payment that insurance companies or third-party payers provide to pharmacies for dispensing medications and providing services.
• This matches: "Insurance companies provide reimbursements to pharmacies".

Answer:

Term	Definition
Depreciation	The rate representing the decrease in value of an asset (equipment, computers, automatic dispensing machines) over time
Markup percentage	Calculate by dividing the markup by the cost and then multiplying by 100
AWP	Average wholesale price; based on the national average cost of medications
Reimbursement	Insurance companies provide reimbursements to pharmacies