Question 1

Which of the following items poses the greatest challenge for maintaining an accurate perpetual inventory system?

Accepted Answer

Hospital consumables pose the greatest challenge for maintain an accurate perpetual inventory system. This is because consumables, such as gauzes, syringes, and needles are difficult to determine quantity used.

Question 2

Which of the following is the correct term for a method of pricing that adjusts the sales price of an item as contemporaneously as possible to the sale, based on its most current replacement acquisition cost and regardless of how much was paid for the item?

Accepted Answer

Just in time pricing is the correct term for a method of pricing that adjusts the sales price of an item as contemporaneously as possible to the sale, based on its most current replacement acquisition cost and regardless of how much was paid for the item.

Question 3

Breakeven analysis is performed in order to adequately price a product. What is the formula for determining breakeven analysis?

Accepted Answer

Breakeven sales price equals fixed cost plus variable cost is the formula for determining breakeven analysis, in order to adequately price a product.

Question 4

If a shipping document enclosed with an inventory delivery states "FOB shipping point", when would the title, or ownership, of the inventory pass to the veterinary practice?

Accepted Answer

If the shipping document enclosed with an inventory shipment state "FOB shipping point", the title, or ownership passes to the veterinary practice when the merchandise is delivered to the shipper. "FOB destination" means that title will pass when merchandise is delivered to the veterinary practice.

Question 5

What document is a legal agreement describing and defining the events causing a partner or shareholder to sell his/her interest in a veterinary hospital, and the terms for resolving other interests and ownerships?

Accepted Answer

A Buy-Sell Agreement is a legal agreement describing and defining the events causing a partner or shareholder to sell his/her interest in a veterinary hospital, and the terms for resolving other interests and ownerships.

Question 6

Marketing that focuses on existing clientele, aiming to strengthen their bond with the practice and increase their demand for veterinary service is known as what?

Accepted Answer

Marketing that focuses on existing clientele, aiming to strengthen their bond with the practice and increase their demand for veterinary service is known as internal marketing.

Question 7

An insurance or prepaid service plan that pays for veterinary care provided to an animal for the purpose of preventing disease or promoting health is known as which of the following?

Accepted Answer

An insurance or prepaid service plan that pays for veterinary care provided to an animal for the purpose of preventing disease or promoting health is known as a wellness plan.

Question 8

What are terms for employment called, whereby employees may quit and employers may terminate as a matter of their own preference unless a specific provision in an employment agreement states an agreed upon duration of employment?

Accepted Answer

at-will employment is a term for employment, whereby employees may quit and employers may terminate as a matter of their own preference unless a specific provision in an employment agreement states an agreed upon duration of employment.

Question 9

If the Human-Companion Animal Bond is extended to the veterinary health care team, what is the likely result of this bi-directional relationship?

Accepted Answer

If the Human-Companion Animal Bond is extended to the veterinary health care team, communication is improved and recommendations are more likely to be followed.

Question 10

In general, what is the professional attitude of veterinarians towards advertising?

Accepted Answer

In general, veterinarians tend to be adverse to blatant forms of advertising. Like many other member of a profession with ethical constraints, advertising tends to have a negative connotation.

Question 11

Which veterinary regulatory agency addresses the issue of advertising and requires compliance with the "Principles of Veterinary Medical Ethics"?

Accepted Answer

The American Veterinary Medical Association (AVMA) addresses the issue of advertising and requires compliance with the "Principles of Veterinary Medical Ethics".

Question 12

Marketing that occurs through any unpaid communication conveyed through the media, such as newspaper, radio, or television, is known as what type of marketing?

Accepted Answer

Marketing that occurs through any unpaid communication conveyed through the media, such as newspaper, radio, or television, is known as publicity marketing.

Question 13

Which of the following is the correct term for a name, term, symbol, or any unique factor that identifies an individual product or service, and sets them apart from the competition?

Accepted Answer

Brand is the correct term for a name, term, symbol, or any unique factor that identifies an individual product or service, and sets them apart from the competition.

Question 14

The acronym "PONK" stands for pet owner, no kids and is an example of which of the following?

Accepted Answer

The acronym "PONK" stands for pet owner, no kids and is an example of a segment profile. PONK's are a typical customer in a veterinary practice, and tend to be very conscientious pet owners.

Question 15

Which of the following components is NOT a part of the veterinary fee income and revenue collection system?

Accepted Answer

Payroll is not a part of the veterinary fee income and revenue collection system.

Question 16

When a client has pet health insurance, who does the privity of contract exist between?

Accepted Answer

When a client has pet health insurance, the privity of contract exists between the insurance company and the animal owner. The veterinarian is outside of the process of collecting on an insurance claim.

Question 17

If an employee time card report that during the course of one day that they worked from 8:00 - 12:00, and 3:00 - 7:00, how many hours would they be paid for that day?

Accepted Answer

If an employee time card report that during the course of one day that they worked from 8:00 - 12:00, and 3:00 - 7:00, they would be paid for 8 hours of work.

Question 18

For the purpose of IRS audits, what type of tax professional is allowed, in addition to an attorney and a CPA) to represent the veterinarian?

Accepted Answer

For the purpose of IRS audits, an enrolled agent is allowed, in addition to an attorney and a CPA) to represent the veterinarian. An enrolled agent is an individual who is licensed and "enrolled" by the federal government to appear in the place of a taxpayer.

Question 19

If income and expenses are measured when the transactions occur, regardless of the physical flow of cash, then a hospital is operating on what accounting basis?

Accepted Answer

If income and expenses are measured when the transactions occur, regardless of the physical flow of cash, then a hospital is operating on an accrual basis.

Question 20

The income statement reports the revenues and expenses for a period of time, based on what concept?

Accepted Answer

The income statement reports the revenues and expenses for a period of time, based on a matching concept. It is applied by matching the expenses with the revenue generated during the period by those expenses.

Quiz 1: Certified Veterinary Practice Manager