In evaluating the operating economics of a dental practice, which of the following is LEAST relevant?

Correct answer: C. The lessor's own insurance policy

• A. Occupancy costs — rent, utilities, common area charges — are a core fixed expense, generally 5–8% of collections.
• B. Amortization spreads the cost of capital equipment across its useful life and is a genuine operating expense affecting profitability and tax position.
• C. CORRECT. The landlord's insurance is the landlord's expense. It has no bearing on the practice's operating economics unless the lease specifically passes the cost through, and even then it appears simply as part of the rent line rather than as an independent factor to evaluate.
• D. Staff compensation is typically the single largest overhead category in a dental practice, usually 25–30% of collections.

Note: Typical overhead benchmarks worth knowing: staff 25–30%, lab 8–10%, supplies 5–7%, occupancy 5–8%, total overhead around 60–65% of collections, leaving roughly 35–40% as owner profit before the owner's own clinical compensation.