Leven Clinic Uses Client-Visits as Its Measure of Activity

question 211

Multiple Choice

Leven Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 3,050 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for September: The administrative expenses in the planning budget for September would be closest to:

• A) $5,400
• B) $5,346
• C) $5,405
• D) $5,435

---

Definitions:

Franchisor

The owner of the trade name or trademark in a franchise.

Non-Exclusive Territory

A designated area where more than one entity is granted rights or privileges, such as sales or distribution, by an agreement.

Limited Liability Partnership

A partnership arrangement in which some or all partners have limited liabilities, protecting personal assets from business debts and liabilities.

Separate Legal Entity

An entity that is legally distinct from its owners or members, capable of having its own rights, duties, and obligations.