Zelenka Clinic Uses Client-Visits as Its Measure of Activity

question 164

Multiple Choice

Zelenka Clinic uses client-visits as its measure of activity.During June, the clinic budgeted for 2, 700 client-visits, but its actual level of activity was 2, 710 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting for June: The medical supplies in the flexible budget for June would be closest to:

• A)$17, 717
• B)$17, 587
• C)$18, 502
• D)$18, 440

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Definitions:

Profit/Loss

Financial metrics indicating the net earnings or deficits incurred by an entity over a particular period, calculated as the difference between revenues and expenses.

Reportable Segment's Equity

The portion of equity attributable to business segments that must be disclosed separately in financial statements according to regulatory requirements.

Reconciliations

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement, typically used in accounting to check the accuracy of financial records.

Listed Entities

Companies whose stocks are traded on a public stock exchange, making their shares available for purchase by the general public.