Fager Clinic Uses Client-Visits as Its Measure of Activity

question 304

Multiple Choice

Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Actual results for February:
The medical supplies in the flexible budget for February would be closest to:

• A) $29,436
• B) $30,789
• C) $29,325
• D) $28,700

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Definitions:

Comprehensive Income

Represents the total change in equity for a business entity not resulting from transactions with owners, including all revenues, gains, expenses, and losses.

Net Fixed Assets

The value of a company’s property, plant, and equipment minus any accumulated depreciation, indicating the tangible assets' net book value.

Liquid Asset

Assets that can be quickly and easily converted into cash without significant loss of value, including cash itself, marketable securities, and accounts receivable.

Cash Flow From Assets

The total amount of cash generated by a company’s business operations after accounting for capital expenditures and additions to net working capital.