Hagel Clinic Uses Client-Visits as Its Measure of Activity

question 17

Multiple Choice

Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,320 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 occupancy expenses in July would be closest to:

• A)$150 F
• B)$190 F
• C)$150 U
• D)$190 U

---

Definitions:

Disclosures

Information provided in financial statements and notes that gives insight into the basis of preparation and specific accounting policies, significant judgments, and potential risks.

IAS 1

International Accounting Standard 1, which outlines the presentation of financial statements, aiming for comparability, transparency, and fairness in financial reporting.

Financial Statements

A set of reports that detail the financial activities and condition of a business, including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.