Chirico Clinic Uses Client-Visits as Its Measure of Activity

question 105

Multiple Choice

Chirico Clinic uses client-visits as its measure of activity.During February, the clinic budgeted for 2, 500 client-visits, but its actual level of activity was 2, 550 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The net operating income in the flexible budget for February would be closest to:

• A)$16, 900
• B)$23, 450
• C)$18, 140
• D)$22, 539

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Definitions:

Flexibility Types

Various classifications of adaptability in an organization, including but not limited to workflow, workforce, and product/service flexibility.

Employee Concerns

Issues or problems raised by employees related to their work environment, job duties, management practices, or workplace relationships.

Just In Time

A management strategy that aligns raw-material orders from suppliers directly with production schedules to increase efficiency and reduce waste.

Continuous Improvement

An ongoing effort to improve products, services, or processes through incremental and breakthrough improvements.