Mock Clinic Uses Client-Visits as Its Measure of Activity

question 127

Multiple Choice

Mock Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 3,100 client-visits, but its actual level of activity was 3,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:
Actual results for August:
-The personnel expenses in the planning budget for August would be closest to:

• A)$81,155
• B)$80,989
• C)$82,295
• D)$80,370

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Definitions:

Operating Characteristics Curve

A graphical representation showing the behavior of a system, such as its true-positive rate versus false-positive rate, under various conditions.

Population Percent Defective

The percentage of items in a given population that do not meet the specified quality criteria, used as a measure of process quality.

OC Curve

The Operating Characteristic Curve, used in statistical quality control, representing the probability of accepting lots as a function of their defect level.

Acceptance Sampling

A statistical quality control method where a random sample of items is inspected to decide if the whole batch meets the prescribed standards.