Federick Clinic Uses Client-Visits as Its Measure of Activity

question 149

Multiple Choice

Federick Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 3,040 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 personnel expenses in the planning budget for October would be closest to:

• A)$91,624
• B)$87,314
• C)$86,165
• D)$90,900

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Definitions:

Angora Goat

A breed of goat known for its soft, long wool called mohair, originally from Ankara, Turkey.

Public Good

A product that one individual can consume without reducing its availability to another individual, and from which no one is excluded, such as national defense or public parks.

Public Good

A good that is non-excludable and non-rivalrous, meaning that its use by one individual does not reduce its availability to others and people cannot be prevented from using it.

Marginal Cost

The increase in total production costs resulting from producing one additional unit of a good or service.