Miao Clinic Uses Client-Visits as Its Measure of Activity

question 229

Multiple Choice

Miao Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,980 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Actual results for July:

-The occupancy expenses in the flexible budget for July would be closest to:

• A)$10,907
• B)$11,054
• C)$11,180
• D)$11,200

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Definitions:

Voting Stock

Voting stock refers to shares in a company that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Shareholders' Meeting

A gathering of a company's shareholders held to discuss and vote on corporate matters and decisions.

Preemptive Rights

The right of shareholders to purchase additional shares in a corporation before the public, in proportion to their existing shareholdings, to maintain their ownership percentage.

Capital Stock

The total amount of shares that a corporation is authorized to issue, as stated in its articles of incorporation.