Question

drag the items to their definitions.

average inventory
par
awp
gross profit

reported margin of profit
a minimum amounts of drugs to keep on hand in inventory called periodic automatic replenishment levels
average wholesale price
beginning inventory for a period of time added to ending inventory for the same period of time

Explanation:

Match gross profit to its definition

Using the Pharmacy Profit Metrics knowledge point
The term Gross profit represents the difference between the revenue generated from sales and the cost of purchasing the inventory. In financial terms, this is the reported margin of profit before overhead expenses are deducted.

• Term: Gross profit
• Definition: Reported margin of profit

Match PAR to its definition

Using the Periodic Automatic Replenishment knowledge point
The acronym PAR stands for Periodic Automatic Replenishment. It represents a system used to maintain optimal stock levels by defining the minimum and maximum quantities of medications that should be kept on hand.

• Term: PAR
• Definition: A minimum amounts of drugs to keep on hand in inventory called periodic automatic replenishment levels

Match AWP to its definition

Using the Average Wholesale Price knowledge point
The acronym AWP stands for Average Wholesale Price. It is a standard benchmark price used in the pharmaceutical industry to estimate the average price at which wholesalers sell drugs to pharmacies.

• Term: AWP
• Definition: Average wholesale price

Match average inventory to its definition

Using the Average Inventory Calculation knowledge point
The term Average inventory is a financial metric calculated to estimate the value or amount of inventory held over a specific period. It is determined by adding the beginning inventory to the ending inventory for that period and dividing by two (though the definition text here describes the sum component of this calculation process).

• Term: Average inventory
• Definition: Beginning inventory for a period of time added to ending inventory for the same period of time

Answer:

Term	Definition
PAR	A minimum amounts of drugs to keep on hand in inventory called periodic automatic replenishment levels
AWP	Average wholesale price
Average inventory	Beginning inventory for a period of time added to ending inventory for the same period of time