Session 9 Quiz Flashcards
(11 cards)
What is the percent of gross if the gross revenue is $1,250,000.00 and the expense is $87,365.00.
6.9%
What is the final (or sixth) stage of budgeting?
Combining budgeted revenue and expense and making adjustments.
What are the six stages of budgeting?
- Determining the desired financial results.
- Analysis of the financial statements.
- Normalizing the revenue and expenses.
- Budgeting revenue.
- Budgeting expenses.
- Combing budgeting revenue and expense and making adjustments.
Patient value is considered a _________ of revenue growth.
Key Driver
A simple method of creating an expense budget is to add what to the base expense figure?
The last three years average growth rate.
What is the difference between the Client Credit Policy and the Charge Account Policy?
Client Credit Policy establishes the pre-qualifications necessary to open a charge account. Example: a client may need a minimum of 2 years of perfect payment history without a problem.
Charge Account Policy establishes credit limits, payment due dates, payment methods and invoicing procedures.
The fee schedule should be reviewed minimally _______ a year.
Once
As a refresher the following is the formula used to determine fees;
(Fixed costs/minute + Staff costs/minute) X (Length of procedure in staff minutes) + (DVM costs/minute) X (length of procedure in DVM minutes) + (direct costs X 2) + Profit.
Using the totals below what price should you charge for this service?
● Fixed costs = $2.35.
● Staff costs per minute = $1.82
● Staff time = 2 technicians, 6 minutes each.
● DVM cost per minute = $3.09
● DVM time = 3 minutes.
● Direct costs = $0.87
● Profit set point = 20%
$73.26
What percent of gross revenue is said to be lost to embezzlement in small businesses annually?
Over 5%
What is the most often used charge of accounts?
AAHA
Why is a Petty Cash system suggested over using cash from the reception drawer for smaller purchases?
Improves internal controls by providing a system for tracking cash purchases.
