Practice Test Geeks(CVPM) Certified Veterinary Practice Manager Practice Test
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Inventory and Cost Control Flashcards

7 cards from real CVPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Inventory and Cost Control flashcards as text

  1. A practice manager reviews a product with a 6-week lead time and sells 30 units per week. What is the lead time demand?

    Answer: 180 units

    Lead time demand = 30 units/week × 6 weeks = 180 units.

  2. Which financial metric best indicates whether a practice's product pricing is covering direct product costs?

    Answer: Gross profit margin

    Gross profit margin measures revenue minus COGS as a percentage of revenue, directly reflecting whether product pricing covers direct costs.

  3. A practice manager notices frequent back-ordering of a specific antibiotic. What is the most effective long-term solution?

    Answer: Increase the reorder point and establish a secondary supplier

    Raising the reorder point and qualifying a backup supplier addresses both timing and supply-chain risk for a frequently back-ordered item.

  4. Under DEA regulations, how long must a veterinary practice retain Schedule II controlled substance records?

    Answer: 2 years

    DEA regulations require that Schedule II controlled substance records be maintained for a minimum of two years.

  5. A practice's average payment terms with suppliers are net 45 days, but its average collection time from clients is 15 days. What does this imply for cash flow?

    Answer: The practice enjoys a favorable cash flow position since clients pay well before payables are due

    Collecting from clients in 15 days while paying suppliers in 45 days means the practice holds cash for 30 days, a favorable working capital position.

  6. Which action is most appropriate when a physical count reveals inventory 15% lower than system records?

    Answer: Investigate root causes such as theft, miscounts, or posting errors before adjusting records

    A significant variance warrants investigation to identify the cause before making accounting adjustments or purchasing decisions.

  7. A practice is evaluating group purchasing organization (GPO) membership for inventory procurement. What is the primary benefit?

    Answer: Access to negotiated pricing through collective purchasing volume

    GPOs aggregate the buying power of many practices to negotiate lower prices with suppliers that individual practices could not achieve alone.