An Example of Cost Control Would Be

question 18

Multiple Choice

An example of cost control would be

• A) analyzing the cost and time savings of an automated pill counter
• B) comparing inventory requirements with or without a long-term care contract
• C) changing to an alternate supplier of less expensive prescription vials
• D) examining the pharmacy personnel salary requirements if pharmacy hours are extended

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Definitions:

Fixed Costs

Expenses that remain constant regardless of the amount of production or sales, including rent, wages, and insurance premiums.

Mixed Cost

A cost that contains both fixed and variable components and changes with the level of output but not directly in proportion.

Fixed Cost Element

A component of total costs that does not change with the level of output or activity within a certain range.

Fixed Cost

Costs that do not change with the level of manufacturing activity or output, such as rent, salaries, and insurance premiums.