Question

The term " Maximum Allowable Post manufacturing Expenses"(MAPE) frequently seen in the news,is used in which context?​

Answer 1

Answer:

MAPE" (Maximum Allowable Post-manufacturing Expenses) means all costs incurred by a manufacturer from the stage of ex-factory cost to retailing and includes trade margin and margin for the manufacturer and it shall not exceed one hundred per cent for indigenously manufactured Scheduled formulations;

Answer 2

Answer:

• Maximum Allowable Post-Manufacturing Expenses, also known as MAPE, are all costs incurred by a manufacturer from the point of ex-factory cost to retailing, including trade margin and manufacturer's margin.

• The NPPA permits MAPE at 100 percent for setting the prices of scheduled formulations produced domestically.

• Maximum Allowable Post-Manufacturing Expenses (MAPE) equation is calculated using the Retail Price equation.

• The government determines a formulation's retail price using the following formula.

R.P. = (1 +$\frac{MAPE}{100}$ ) + E. D  x (M.C + C.C + P.M + P.C)

Where,

• R. P. is the retail price.

• M.C. stands for material cost, which covers the price of the pharmaceuticals and other pharmaceutical aids utilised, as well as any overages and process loss that may occasionally be indicated as a norm.

• C.C. stands for conversion cost, which is calculated using defined costing techniques and fixed as a standard every year.

• P.M. stands for "packaging material cost," which includes "process loss" and is set as a standard each year.

• P.C. = Packing charges, calculated in accordance with standard costing procedures and set as a standard each year.

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