Buonocore Clinic Uses Client-Visits as Its Measure of Activity

question 145

Multiple Choice

Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Actual results for August: The revenue variance for August would be closest to:

• A)$4,150 F
• B)$2,764 F
• C)$2,764 U
• D)$4,150 U

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Definitions:

Assumptions

Statements taken to be true for the purpose of argument or investigation, often foundational in financial modeling and planning.

Inferences

Conclusions or deductions made based on evidence and reasoning.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods to identify trends and growth patterns.

Vertical Analysis

A method in financial statement analysis where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.