Askland Clinic Uses Client-Visits as Its Measure of Activity

question 140

Multiple Choice

Askland Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,130 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:
Actual results for October:
-The revenue variance for October would be closest to:

• A)$2,826 F
• B)$3,690 F
• C)$2,826 U
• D)$3,690 U

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Definitions:

Marketplace

A space or system in which commercial transactions are conducted, especially the buying and selling of goods and services.

Process Reengineering

The fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical measures of performance.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, leading to greater sales or margins and/or retaining more customers.

Mass Production

A manufacturing process characterized by the high-volume production of standardized goods using assembly line techniques.