Carvana Clinic Uses Patient-Visits as Its Measure of Activity

question 227

Essay

Carvana Clinic uses patient-visits as its measure of activity. During December, the clinic budgeted for 3,400 patient-visits, but its actual level of activity was 3,100 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting: Actual results for December: Required:
Prepare a report showing the clinic's revenue and spending variances for December. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Attribution Theory

A theory that explains how individuals infer the causes of their own and others' behaviors and events.

Selective Attention

The focusing of conscious awareness on a particular stimulus while ignoring others, essential in processing information efficiently.

Self-fulfilling Prophecy

A psychological phenomenon in which a person's or group's belief or expectation brings about its own realization or outcome.

Stereotyping

Making generalized assumptions about individuals or groups based on perceived characteristics, often leading to prejudiced attitudes or actions.