Ruetz Clinic Uses Client-Visits as Its Measure of Activity

question 315

Multiple Choice

Ruetz Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,520 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: The net operating income in the flexible budget for November would be closest to:

• A)$9,461
• B)$12,950
• C)$9,312
• D)$13,376

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Definitions:

Resale of Goods

The act of selling an item that has previously been purchased from a vendor or manufacturer, typically involving goods that are sold in the same condition as they were acquired.

Obligated to Try

A duty or an agreement to make a good faith effort to achieve a stipulated outcome or perform a certain task.

Consequential Damages

Damages that arise not directly from a breach of contract but as a foreseeable result of the breach, such as lost profits or additional operational costs.

Prima Facie

A term from Latin meaning "on its face" or "at first sight"; in legal contexts, it refers to evidence that, unless rebutted, would be sufficient to prove a particular proposition or fact.