CMAA Office Supply, Inventory, and Facility Management — Questions and Answers
Question 1: A medical office tracks a minimum stock quantity below which an item must be reordered. This minimum quantity is called the:
- Backorder threshold
- Par level (Correct answer)
- Restock ceiling
- Safety margin index
Correct answer: Par level
The 'par level' is the minimum quantity of a supply item that should be on hand at all times. When inventory falls below par, a purchase order is placed to bring stock back up to the designated level, preventing shortages.
Question 2: The medical administrative assistant discovers a box of gauze pads in the supply closet that expired six months ago. The MOST appropriate action is to:
- Continue using them if the packaging appears undamaged
- Label them 'use first' and place them at the front of the shelf
- Remove and dispose of them per facility policy and replace with current stock (Correct answer)
- Donate them to a community clinic without documentation
Correct answer: Remove and dispose of them per facility policy and replace with current stock
Expired supplies must be removed from use and disposed of according to facility and regulatory policies. Using expired medical supplies risks patient safety and creates legal liability. Proper disposal documentation may also be required.
Question 3: What is the purpose of a Safety Data Sheet (SDS) in a medical office?
- To document patient medication allergies for the clinical team
- To list the office's approved vendors and contract terms
- To provide chemical composition, handling, and emergency information for hazardous substances (Correct answer)
- To track employee attendance and payroll hours
Correct answer: To provide chemical composition, handling, and emergency information for hazardous substances
OSHA's Hazard Communication Standard requires that Safety Data Sheets (formerly MSDS) be maintained and accessible for all hazardous chemicals used in the workplace. They detail physical and chemical properties, health hazards, safe handling procedures, and emergency response information.
Question 4: A vendor representative approaches the medical office offering a significant discount in exchange for signing an exclusive supply contract. Before agreeing, the administrative assistant should:
- Accept immediately to lock in the discount before it expires
- Consult the practice manager or physician owner, as contractual commitments require their authority (Correct answer)
- Ask the billing department to verify that the discount codes are correct
- Have the front desk staff vote on whether to accept the contract
Correct answer: Consult the practice manager or physician owner, as contractual commitments require their authority
Signing a vendor contract is a business commitment that binds the practice financially and legally. This decision must be escalated to the practice manager or physician owner, who have the authority to enter into such agreements on behalf of the practice.
Question 5: Which of the following BEST describes accounts payable in a medical office context?
- Collecting co-payments from patients at check-in
- Posting insurance reimbursements to patient accounts
- Processing invoices from vendors and issuing payment for goods and services received (Correct answer)
- Verifying patient insurance eligibility before appointments
Correct answer: Processing invoices from vendors and issuing payment for goods and services received
Accounts payable (AP) represents money the practice owes to outside vendors — processing their invoices, confirming receipt of goods or services, and issuing timely payments. This is the opposite of accounts receivable (AR), which involves collecting money owed to the practice.
Question 6: To minimize supply shortages without requiring a full office closure for counting, which inventory approach is considered BEST practice for a medical office?
- Counting all supplies once per year during a scheduled office closure
- Having each provider track and order their own individual supplies
- Using a perpetual inventory system with regular cycle counts to maintain ongoing accuracy (Correct answer)
- Relying solely on vendor invoices to estimate current stock levels
Correct answer: Using a perpetual inventory system with regular cycle counts to maintain ongoing accuracy
A perpetual inventory system continuously tracks stock levels as items are used and received. Cycle counts — counting a rotating subset of items on a schedule — keep the system accurate without requiring a full shutdown. This approach reduces shortages and discrepancies while minimizing disruption to practice operations.
CMAA Office Supply, Inventory, and Facility Management
A medical office tracks a minimum stock quantity below which an item must be reordered.
This minimum quantity is called the: