Miao Clinic Uses Client-Visits as Its Measure of Activity

question 110

Multiple Choice

Miao Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,980 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Actual results for July: The spending variance for medical supplies in July would be closest to:

• A)$936 F
• B)$936 U
• C)$1,100 U
• D)$1,100 F

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Definitions:

Sales Mix

The combination of products or services that a company sells, impacting its overall profitability.

External Factors

Elements outside a company that can impact its performance or operations, such as economic conditions, competition, and regulatory environment.

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any costs or expenses are deducted.

Profit Before Income Tax

The earnings of a business before taking into account the deduction of income tax expenses, also known as pre-tax profit.