A Clinic Uses Doctors and Nurses Optimally and Is Servicing

question 99

Multiple Choice

A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year.
-If doctors make $50,000 a year and nurses make $40,000 a year, then

• A) the clinic could serve more patients by hiring more doctors and fewer nurses.
• B) the clinic could serve more patients by hiring fewer doctors and more nurses.
• C) the clinic is making the correct decision.
• D) the clinic is not making the correct decision because the additional patients per dollar spent on doctors is greater than the additional patients per dollar spent on nurses.
• E) a and d

---

Definitions:

Statement of Net Position

A financial statement that displays an organization's assets, liabilities, and net position at a specific point in time, highlighting its financial health.

Statement of Revenue

A financial statement that shows the income earned by a company over a certain period of time.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may or may not align with the calendar year.

General Fund Journal Entries

Entries in the accounting records that detail transactions involving the government's general fund, which covers most basic governmental activities.