Guareno Clinic Uses Client-Visits as Its Measure of Activity

question 117

Multiple Choice

Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting:
Actual results for December:
The activity variance for administrative expenses in December would be closest to:

• A) $10 U
• B) $90 F
• C) $90 U
• D) $10 F

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Definitions:

Public Good

A product that one individual can consume without reducing its availability to another individual, and from which no one is excluded, such as national defense or public parks.

Public Good

A good that is non-excludable and non-rivalrous, meaning that its use by one individual does not reduce its availability to others and people cannot be prevented from using it.

Marginal Cost

The increase in total production costs resulting from producing one additional unit of a good or service.

Market Allocating Resources

The process through which a free market economy determines the distribution of resources based on supply and demand dynamics.