Guareno Clinic Uses Client-Visits as Its Measure of Activity

question 336

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 occupancy expenses in the flexible budget for December would be closest to:

• A) $13,720
• B) $14,410
• C) $14,500
• D) $14,286

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Definitions:

Open Economy

An economy that interacts freely with other economies around the world.

Loanable Funds

The market where savers supply funds to borrowers, typically through financial intermediaries, affecting interest rates and economic activity.

National Saving

The total amount of savings in a country, equal to the sum of private and public savings.

Domestic Investment

The total amount of investment in physical assets like buildings, machinery, and technology, within a country’s borders.