Kirnon Clinic Uses Client-Visits as Its Measure of Activity

question 405

Multiple Choice

Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: The activity variance for administrative expenses in July would be closest to:

• A) $2 U
• B) $162 F
• C) $2 F
• D) $162 U

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Definitions:

Collection Letter

A written communication sent by a creditor or a collection agency to a debtor, requesting payment of an overdue account.

Days Past Due

The number of days that have elapsed since a payment or obligation was due.

Time Limit

A specific period within which something needs to be completed or achieved.

Specific Debt

The amount of debt (financial obligation) an entity owes relative to its income or revenue.