Bartosiewicz Clinic Uses Client-Visits as Its Measure of Activity

question 329

Multiple Choice

Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting:
Actual results for January:
The activity variance for net operating income in January would be closest to:

• A) $188 F
• B) $7,118 F
• C) $188 U
• D) $7,118 U

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Definitions:

Similar Products

Products that serve the same or similar purposes and can be used interchangeably by consumers.

Large Number

A vague term often referring to a quantity much larger than what is typically encountered in everyday life.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for significant differentiation.

Florists

Professionals or businesses specializing in the arrangement and sale of flowers and ornamental plants for various occasions.