Jiminian Clinic Uses Client-Visits as Its Measure of Activity

question 61

Multiple Choice

Jiminian Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,660 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Actual results for March: The net operating income in the flexible budget for March would be closest to:

• A)$11,654
• B)$13,101
• C)$12,330
• D)$13,389

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Definitions:

Contextual

Pertaining to or depending on the context of something; relating to the circumstances that form the setting for an event, statement, or idea.

Exponential

Pertaining to a mathematical function or growth pattern that increases at a rate proportional to the current value, resulting in rapid growth.

Analytical

Relating to or using analysis or logical reasoning for problem-solving or understanding concepts.

Practical

Concerned with the actual doing or use of something rather than with theory and ideas.