Springmeyer Clinic Uses Client-Visits as Its Measure of Activity

question 116

Multiple Choice

Springmeyer Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,940 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:
-The administrative expenses in the planning budget for August would be closest to:

• A) $7,594
• B) $7,590
• C) $7,165
• D) $7,264

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Definitions:

Marginal Costs

The increase in total production cost that arises from producing one additional unit of a good or service.

Average Fixed Cost Curve

A graph that shows the fixed costs of production divided by the quantity of output produced, illustrating how these costs dilute over larger production volumes.

U-Shaped

A descriptive term often used in economics and statistics to describe a graph or curve that resembles the shape of the letter "U", indicating a particular kind of relationship or trend.

Positive Amount

A value that is greater than zero, indicating a quantity that adds to a total rather than subtracting from it.