Mah Clinic Uses Client-Visits as Its Measure of Activity

question 54

Multiple Choice

Mah Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,800 client-visits, but its actual level of activity was 3,750 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
-The occupancy expenses in the flexible budget for April would be closest to:

• A) $15,575
• B) $15,660
• C) $14,975
• D) $15,377

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Definitions:

Nonrival

A characteristic of a good whereby one person's consumption does not diminish the availability of that good for consumption by others.

Television Programs

Scheduled content broadcasted on television, including series, movies, news, and other forms of entertainment or information.

Exclusion

The act of denying someone's access to a particular resource or activity.

Common Resource

A type of good that is non-excludable and rivalrous, such as fish stocks in the ocean; it is available to all but can be depleted by excessive use.