Smithson Clinic Uses Client-Visits as Its Measure of Activity

question 260

Multiple Choice

Smithson Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,270 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:
-The occupancy expenses in the flexible budget for May would be closest to:

• A) $14,334
• B) $13,840
• C) $13,786
• D) $14,599

---

Definitions:

Euro

The official currency of 19 of the 27 European Union countries, which together make up the Eurozone.

Buying Power

The capacity of an individual or company to purchase goods and services, often related to the amount of money available.

CPI

A metric known as the Consumer Price Index evaluates the overall weighted pricing of a range of consumer items and services, covering areas such as healthcare, food, and transportation.

Raise

An increase in salary or wages.