*Blackwell Part 3

Question 1

define ATC

Answer 1

average transaction charge = net revenue in timeframe / # transactions in same timeframe

Question 2

define operating budget

Answer 2

budget that encompasses a 12-month period of operations

Question 3

define: chart of accounts

Answer 3

listing of all categories used to group payments in a practice’s accounting system

Question 4

define: common cost

Answer 4

an expense that cannot be traced to individual activity (i.e. tech pay cannot be traced to any individual patients)

Question 5

Bottom Line =

Answer 5

revenue - COGs - operating expenses - labor - taxes

Question 6

When it comes to paying veterinary bills, what are the two most common risk management strategies?

Answer 6

Insurance and wellness plans

Question 7

Define cryptocurrency

Answer 7

lines of computer code that hold monetary value

Question 8

what are the four reasons cryptocurrency is so popular?

Answer 8

1. not regulated by the government
2. bypass banks
3. gives the power to the people
4. transactions are irreversible

Question 9

define cash payback

Answer 9

the amount of time it takes to recover the cost of an investment

Question 10

define incremental cash flow (ICF)

Answer 10

change in practice’s net cash flow due to the purchase of an investment

Question 11

define initial investment outlay

Answer 11

the ICF at the start of an equipment’s life, which includes purchase price, shipping, and install

Question 12

term for: the proposed capital investment using the present value concepts to compute the rate of return from the NCFs expected from the investment

Answer 12

internal rate of return (IRR)

Question 13

how to calculate ARR:

Answer 13

average investment = cost of asset / 2

ARR = est. ave. annual income / ave investment x 100

example: ultrasound machine
$30,000 cost / 2 = $15,000 average investment
$10,000 est. ave. annual income / $15,000 x 100 = 66%

Question 14

term for: value of an investment calculated by comparing the initial cash outlay with the present value of the future NCFs by using a management-determined interest rate of return

Answer 14

Net Present Value (NPV)

Question 15

define: accounts payable aging schedule

Answer 15

list of debts to suppliers over certain periods of time

Question 16

term for: summary of practice income, expenses, and resulting profit or loss

Answer 16

Profit and Loss Statement

Question 17

when creating a budget, what are the four categories of outflow?

Answer 17

COGs, operating expense, major purchases, debt payments

Question 18

formula for: average collection period

Answer 18

current AR balance / annual sales / 360

Question 19

formula for: AR to sales ratio

Answer 19

current AR balance/monthly sales

Question 20

term for: the national automated payment clearing system in the U.S.

Answer 20

automated clearing house (ACH)

Question 21

define: embezzelment

Answer 21

to take property or money entrusted to your care

Question 22

what are the three factors that make up the “fraud triangle”?

Answer 22

situational pressure, opportunity, personal integrity

Question 23

term for: evidence-based practices in which professional intervention can be defined, optimized, and sequenced, and in which the outcomes can be measured

Answer 23

care pathway

Question 24

what is EVA and what is the formula for it?

Answer 24

economic value added - value of something at the end of a time period minus the value at the beginning of that time period

= net operating profit after taxes - (capital x cost of capital)

Question 25

term for: method of continuously examining processes and making changes to them to make them more efficient and effective

Answer 25

continuous quality improvement

Question 26

what is the FOCUS-PDSA acronym?

Answer 26

find a process to improve
organize a team
clarify the problem
understand
select improvements

plan
do
study
act

Question 27

term for: the regulation that lists the categories of hazardous waste

Answer 27

EPA Regulation 40 CFR 261

Question 28

how much square footage should a building be per dvm?

Answer 28

1500-3000

Question 29

building sqft divided by ____ sqft = required number of parking spaces

Answer 29

250

Question 30

once you know how many parking spaces a new build location needs, multiply that by ___sqft to find parking lot size

Answer 30

400

Question 31

define bridging documents

Answer 31

architectural drawings that are more developed than schematic drawings, but less developed than permit and construction drawings