Ibsen Clinic Uses Client-Visits as Its Measure of Activity

question 22

Multiple Choice

Ibsen Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,340 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 net operating income in the flexible budget for December would be closest to:

• A) $13,990
• B) $14,762
• C) $11,898
• D) $12,188

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Definitions:

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment, serving as the foundation for perception.

Physical Energy

The capacity to do work, which manifests in forms such as kinetic, potential, thermal, electrical, chemical, and nuclear energy.

Physical Objects

Items that occupy space and have mass, as opposed to abstract concepts or digital entities.

Perception

The process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events.