Prestridge Corporation Is a Service Company That Measures Its Output

question 272

Multiple Choice

Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August.The activity variance for total expenses for August would have been closest to:

• A) $3,000 U
• B) $2,500 F
• C) $3,000 F
• D) $2,500 U

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Definitions:

Accentuation Effect

A cognitive bias that emphasizes the differences between categories or groups of people more than they actually exist.

Categorisation

The process of grouping items or information based on shared characteristics or qualities.

White-coat Syndrome

A phenomenon where a patient's blood pressure is higher when taken in a medical setting due to anxiety or nervousness around healthcare professionals.

Patient Reaction

The response or behavior a patient exhibits in reaction to medical treatment, medication, or healthcare environment.