FMOH Profit and Loss: Revenue and Expenses

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What is the formula for profit?

Collections minus Payroll expenses
Gross Production minus Adjusted Production
Revenue minus expenses (correct)
Collections ratio divided by adjusted production

What does 'production' refer to in the context of dentistry?

The payments made to the practice and deposited in the business bank account
The total operating expenses of the practice
The percentage of collection divided by adjusted production
The total dollar amount of treatment performed by a provider (correct)

What is the widely accepted target collection ratio of adjusted production?

96 to 100% (correct)
105 to 110%
90 to 95%
80 to 85%

What is the break-even point in dentistry?

The level at which collection equals total operating expenses (C) Signup and view all the answers

Which expense is typically the highest in most businesses, especially skilled services?

Payroll expense (D) Signup and view all the answers

What does capacity refer to in the context of a dental practice?

The limits of the practice's ability to produce in terms of resources and appointments (B) Signup and view all the answers

What is meant by 'collections ratio'?

'Collections' divided by 'Adjusted Production' (D) Signup and view all the answers

What does 'adjusted production' represent in dentistry?

'Production' after insurance write-offs are applied (C) Signup and view all the answers

How is technology typically utilized in a dental practice?

To boost team efficiency (A) Signup and view all the answers

What represents the limits of a dental practice's ability to produce?

Equipment and provider skills (A) Signup and view all the answers

What does the term 'overhead' refer to?

Total practice expenses as a percentage of total revenue (B) Signup and view all the answers

What is the purpose of a vision statement?

To outline the purpose, goals, and strategic direction of an organization (B) Signup and view all the answers

What does the US Equal Employment Opportunity Commission (EOC) do?

Enforces federal laws to protect individuals from discrimination in employment (D) Signup and view all the answers

What is the meaning of 'employment at will'?

Employers may legally terminate an employee at any time for any reason, or for no reason without incurring legal liability (A) Signup and view all the answers

What is the purpose of Situational leadership?

Responding with a leadership style based on the circumstances at hand (D) Signup and view all the answers

What is the role of the Occupational Safety and Health Administration (OSHA)?

To ensure safe and healthful working conditions for workers by setting and enforcing standards and providing training outreach (A) Signup and view all the answers

What is the purpose of a daily huddle in a dental practice?

To plan daily activities and discuss scheduling priorities (A) Signup and view all the answers

What does a written employee handbook provide?

Organizational communication on workplace policies and procedures (B) Signup and view all the answers

'Collaborative/Participative leadership' can be highly effective for empowering employees in which activities?

'Brainstorming' or problem solving (C) Signup and view all the answers

'Situational leadership' can be very effective in which area?

'Conflict management' (D) Signup and view all the answers

'Employment at will' is a legal statute that stipulates what regarding employee termination?

'Employers may legally terminate an employee at any time for any reason, or for no reason without incurring legal liability' (A) Signup and view all the answers