Bartosiewicz Clinic Uses Client-Visits as Its Measure of Activity

question 180

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

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Definitions:

Geographic Pricing

A pricing strategy where the price of a product or service varies according to the geographic location of the buyer.

Single-Zone Pricing

A pricing strategy where a company charges the same price for its product or service, regardless of the geographical location of the customer.

Multiple-Zone Pricing

A pricing strategy where a company sets different prices for its products or services in different geographical areas based on local market conditions.

Promotional Pricing

A marketing strategy where temporarily reduced prices are used to increase short-term sales and visibility of a product or service.