Zelenka Clinic Uses Client-Visits as Its Measure of Activity

question 335

Multiple Choice

Zelenka Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,710 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for June: The medical supplies in the flexible budget for June would be closest to:

• A)$17,717
• B)$17,587
• C)$18,502
• D)$18,440

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Definitions:

Economic Means

The methods or resources available for achieving economic objectives, such as wealth accumulation or resource allocation.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used to analyze the effect of one variable on another by holding all other relevant factors constant.

Other Things Equal

A Latin term (ceteris paribus) used in economics to signify examining the effect of one changing factor when all other factors remain constant.

Normative Economic Statement

An opinion or judgment that reflects values or what ought to be, rather than factual claims about what is.