EGEL Plus MVZ · Mexico · CENEVAL
Original practice questions written to the published syllabus · not past papersThe non-technical skills that decide whether a veterinarian succeeds: talking to clients, consent, teamwork and leadership, the business of practice, clinical governance and looking after oneself.
In the exams: NAVLE communication 8% and professionalism, practice management and wellness 7%; RCVS Day One competences (Personal Leadership, Reflective Relationships); AVMA COE competencies
EGEL Plus MVZ (Mexico)
Administration items on costs, margins, break-even and record keeping for farm and practice businesses.
How our questions for EGEL Plus MVZ spread across the units of Communication, Professionalism, Practice Management & Wellbeing. Difficulty: 6 easy, 14 medium, 6 hard.
| Practice business and finance | 26 |
Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.
In a profit and loss account, gross profit is:
A. Revenue minus the cost of goods sold
Gross profit is revenue less the direct cost of the drugs, consumables and services sold. Subtracting all expenses and tax gives net profit; cash in minus cash out is cash flow, not profit.
Further reading: Shilcock & Stutchfield, Veterinary Practice Management
In ABC inventory analysis, class A items are:
D. The few items with most of the annual stock value
ABC analysis ranks items by annual usage value; class A is the small number of items carrying most of the value and deserving the tightest control. Class C is the many items of low total value.
Further reading: Shilcock & Stutchfield, Veterinary Practice Management
The services marketing mix extends the 4Ps (product, price, place, promotion) with which three elements?
D. People, process and physical evidence
The 7Ps add people, process and physical evidence. In a practice, the receptionist, the booking process and a clean waiting room are part of what the client buys.
Further reading: Booms & Bitner services marketing mix
In a SWOT analysis, a new corporate clinic opening nearby is:
B. A threat: external, could take clients
Strengths and weaknesses are internal; opportunities and threats are external. A new competitor is an external factor that could harm the practice, so it is a threat.
Further reading: Shilcock & Stutchfield, Veterinary Practice Management
A clinic has fixed costs of 45,000 a month. The average consultation fee is 50 and the variable cost per consultation is 20. How many consultations a month does it need to break even?
B. 1,500
Break-even = fixed costs ÷ (price − variable cost) = 45,000 ÷ 30 = 1,500. Dividing by the fee alone gives 900 and ignores variable costs; dividing by the variable cost gives 2,250; adding fee and cost gives 643.
Further reading: Shilcock & Stutchfield, Veterinary Practice Management
A practice's cost of goods sold is 240,000 a year; stock was 50,000 at the start of the year and 30,000 at the end. Using average stock and a 365-day year, how many days of stock does it hold on average?
D. 61 days
Turnover = 240,000 ÷ 40,000 = 6; days on hand = 365 ÷ 6 = 60.8 ≈ 61 days. Opening stock alone gives 76 days, closing stock alone 46 days, and 6 is the turnover, not days.
Further reading: Shilcock & Stutchfield, Veterinary Practice Management
A practice uses 8 vials a day of an injectable, the supplier's lead time is 5 days, and the practice keeps a safety stock of 20 vials. At what stock level should it reorder?
A. 60 vials
Reorder point = daily usage × lead time + safety stock = 8 × 5 + 20 = 60. 40 omits the safety stock, 28 adds one day's use to the safety stock, and 160 multiplies usage by the safety stock.
Further reading: Shilcock & Stutchfield, Veterinary Practice Management
A practice has revenue of 1,200,000 and total expenses, including tax, of 1,080,000. What is its net profit margin?
C. 10%
Net margin = net profit ÷ revenue = 120,000 ÷ 1,200,000 = 10%. Dividing by expenses gives 11.1%; 90% is expenses as a share of revenue; 1,000% is the ratio inverted (revenue ÷ net profit).
Further reading: Shilcock & Stutchfield, Veterinary Practice Management
A practice had 2,000 active clients at the start of the year. At the end it had 2,100 active clients, of whom 400 were new during the year. What was its client retention rate?
A. 85%
Retained clients = 2,100 − 400 = 1,700; retention = 1,700 ÷ 2,000 = 85%. Dividing by the year-end total gives 81%; 105% is the year-end count divided by the starting count (5% net growth), which hides the loss of 300 clients; 20% is the new-client rate.
Further reading: Shilcock & Stutchfield, Veterinary Practice Management
An item sells for 100 and costs 60. The practice offers a 10% discount. By how much must sales volume rise just to keep total gross profit the same?
C. 33.3%
Gross profit per unit falls from 40 to 30, so volume must rise by 40 ÷ 30 − 1 = 33.3%. 10.0% assumes a one-for-one effect; 11.1% is 100 ÷ 90 − 1, which ignores cost; 25.0% is 10 ÷ 40, the share of old profit lost, not the volume needed.
Further reading: Shilcock & Stutchfield, Veterinary Practice Management
Ten here, 26 in the app. The Laisha app has every practice question we have written to EGEL Plus MVZ in this subject, marked as you go, with timed papers, a jump-to-unanswered list and a certificate when you pass at 70 per cent.
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