Bartosiewicz Clinic Uses Client-Visits as Its Measure of Activity

question 300

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 overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to:

• A) $7,118 U
• B) $6,930 U
• C) $6,930 F
• D) $7,118 F

---

Definitions:

Financing Activities

Transactions between a company and its financiers, including equity, debt, and dividend payments, affecting the cash flow statement.

Net Cash Flows

The difference between cash inflows and cash outflows in a given period, reflecting the company's liquidity position.

Statement of Cash Flows

The statement of cash flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Net Increase

The difference between the current figure and the previous figure when the current figure is larger.