Hepburn Clinic Uses Client-Visits as Its Measure of Activity

question 294

Multiple Choice

Hepburn Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,180 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting for July:

-The personnel expenses in the planning budget for July would be closest to:

• A)$76,494
• B)$79,860
• C)$79,594
• D)$76,975

---

Definitions:

Net Sales

The total sales income of a company after removing costs associated with returns, allowances for damaged or lost items, and price reductions.

Multiple-Step Income Statement

A detailed financial statement that separates operating revenue and expenses from non-operating items, displaying multiple layers of income and expense.

Net Sales

The revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Merchandise Inventory

Goods that a retail or wholesale company intends to sell to customers, recorded as a current asset on the balance sheet.