Eliminating paid time off and treating that time as billable would raise utilization to approximately:

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Multiple Choice

Eliminating paid time off and treating that time as billable would raise utilization to approximately:

Utilization is billed hours divided by total hours available. If you eliminate PTO as a non-billable time and count that time as billable, the numerator increases by the PTO hours while the total hours available stays the same. That boosts the utilization percentage.

For a typical 2,080-hour year, say you have about 160 hours of PTO and current billable hours around 1,248 (60% of 2,080). Reclassifying PTO adds 160 hours to billable, giving 1,408 billed hours. 1,408 divided by 2,080 equals about 0.676, or roughly 68%.

So, the approximate utilization would be about 68%, assuming the PTO time can be billed and other non-billable time isn’t present.

Eliminating paid time off and treating that time as billable would raise utilization to approximately:

Prepare for the Amber Book Practice Management Test with engaging multiple choice questions, detailed explanations, and study guides. Sharpen your skills and boost your confidence for the PcM exam. Get ready to ace your test!

Eliminating paid time off and treating that time as billable would raise utilization to approximately:

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