Fager Clinic Uses Client-Visits as Its Measure of Activity

question 310

Multiple Choice

Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting:
Actual results for February:
The spending variance for medical supplies in February would be closest to:

• A) $1,405 F
• B) $780 F
• C) $780 U
• D) $1,405 U

---

Definitions:

Patent Infringement

The act of utilizing a patented invention without permission from the patent holder.

Intangible Assets

Non-physical assets that represent a value to the company, such as trademarks, patents, and goodwill.

Amortizing

Amortizing involves gradually paying off a debt over time in regular payments that cover both principal and interest.

Indefinite Lives

Refers to intangible assets that do not have a predictable useful life, making their amortization over time inappropriate.