Monard Clinic Uses Client-Visits as Its Measure of Activity

question 152

Multiple Choice

Monard Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,710 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

Actual results for January:


-The activity variance for net operating income in January would be closest to:

• A)$143 U
• B)$5,957 F
• C)$143 F
• D)$5,957 U

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Definitions:

Delaying Gratification

The ability to postpone immediate pleasure or satisfaction in order to achieve a longer-term goal.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society feel uncomfortable with ambiguity and uncertainty.

Ambiguity

The quality of being open to more than one interpretation; lack of definiteness or clarity.

Assertiveness

A communication style characterized by confidently expressing one’s thoughts, feelings, and needs directly and respectfully.