Business Flashcards
(25 cards)
What are the 4 Ps of marketing?
Product
Place
Price
Promotion
How are percentages for VAT calculated?
Cost x (1 + percentage as a fraction)
How is the cost of medicines used during the year calculated?
Cost of medicines used during the year = stock at start of year + purchases during the year + delivery costs – stock left at end of year
How is sales price calculated?
Sales price = wholesaler price + delivery charge + direct labour + direct materials + direct equipment costs + overheads + profit
Define mark up.
A percentage of the cost price added to the cost price to gain the selling price. Expressed as a percentage of the selling price.
Define profit margin.
The profit expressed as a percentage of the selling price.
How is the selling price calculated?
Selling price – cost price) / cost price x100
How is professional fee calculated?
Professional Fee = Direct Labour + Direct Materials + Direct Equipment Costs + Overheads + Profit
How is labour cost per hour calculated?
Annual Vet or Nurse cost ÷ number of chargeable hours per year = Vet or Nurse cost per hour
How is the cost per procedure calculated?
Divide total annual cost by number of procedures
What is overhead per vet hour calculated and what is it used for?
Total practice overheads are divided by total FTE vet hours
Used for costing all fees
What is break-even point analysis formula?
Break-Even Point = Fixed Costs/(Average Price — Variable Costs)
What is GDPR?
Data protection act controls how personal information is used by organisations, businesses or the government
What must we ensure about all data according to GDPR?
- Used fairly, lawfully and transparently
- Used for specified, explicit purposes
- Used in a way that is adequate, relevant and limited to only what is necessary
- Accurate and, where necessary, kept up to date
- Kept for no longer than is necessary
- Handled in a way that ensures appropriate security, including protection against unlawful or unauthorised processing, access, loss, destruction or damage
What does GDPR affect in veterinary practices?
- Referrals
- Provision of 24 hour care if done outside of the host practice
- Transferring patient record information
- Pet insurance
- Using patient samples/data for research
What must be taken into account when charging for services in a veterinary practice?
- Charge for what you do at the time you do it
- Missed charges are common
- Maintain accurate clinical records
- Bill on the practice management software each day
What is stock control in a veterinary practice?
- Injectable mediations mostly have a 28 day broach
- Use stock with short expiry first
- Shut the fridge
Distinguish estimates and quotas when it comes to charging for services.
A quote is a fixed price – never give
An estimate is an educated guess not legally binding
Put this in writing
What are the essential insurance questions that vets have a responsibility to ensure owners ask their insurance companies?
- Check level of cover
- Check cover for life/defined benefit
- Check how much of yearly limit is left (still available)
- Check excess and percentage contribution
- Check when cover was taken out
- Check for pre-existing (not covered) conditions
- Check for known policy exclusions
What are the properties of sole traders?
- Self employed
- Personal risk is high
- Taxed using personal allowances
What are the benefits of sole traders?
- Full control and simple to operate
- No legal requirement to file business accounts on the public record
- Limited liability partnerships reduce the level of personal risk
What are joint ventures?
2 or more people/companies come together for mutual benefit but not a simple partnership, very complex. Often dissipate after project.
What are the properties of joint ventures?
- No distinct legal structure for joint ventures in the UK
- Commonly formed between limited companies
- Ensure that structure enables exit and responsibilities are defined
What is the basic structure of companies and corporations?
Basic company structure is private limited company
