Feiner Clinic Uses Client-Visits as Its Measure of Activity

question 166

Multiple Choice

Feiner Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,220 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
-The activity variance for administrative expenses in December would be closest to:

• A) $8 F
• B) $162 F
• C) $162 U
• D) $8 U

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Definitions:

Entity Principle

An accounting concept that treats a business as separate from its owners or other businesses for financial reporting.

Executive Officers

High-ranking executives who are responsible for managing the operations and resources of a company, making major corporate decisions, and ensuring the company's operational success.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares rather than cash.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.