What does Actual Acquisition Cost (AAC) refer to?

Actual Acquisition Cost (AAC) refers to the specific dollar amount that a pharmacy pays to obtain medication from a manufacturer or supplier. This figure is crucial for pharmacies as it helps them determine the true cost of medications they dispense, allowing for better financial management and pricing strategies. The AAC is used in various calculations, including reimbursement processes from insurance providers and government programs.

Understanding AAC is vital for pharmacy technicians since it directly impacts inventory management and the overall financial health of a pharmacy. This allows for accurate pricing to patients while ensuring that the pharmacy remains profitable. In contrast to other options, the AAC does not pertain to retail prices or operational costs; instead, it strictly focuses on the actual amount spent on the procurement of medications.