Bernes Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

question 60

Multiple Choice

Bernes Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During October, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: The activity variance for wages and salaries in October would be closest to:

• A) $298 U
• B) $122 F
• C) $298 F
• D) $122 U

Understand the concept of fixed, variable, and marginal costs in business operations.

Calculate contribution margin and understand its significance for pricing and profitability.

Explain and calculate the break-even quantity and its implications for business decisions.

Understand the concept of Net Present Value (NPV) and its application in investment decisions.

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Definitions:

Stockholders

Individuals or entities that own one or more shares of stock in a public or private corporation, which represents a share in its ownership.

Market Pressures

The forces exerted by supply and demand within a marketplace that influence business decisions, product pricing, and economic policies.

High Profiles

Entities or individuals receiving a significant amount of public attention or media coverage, often due to their status, actions, or positions.

Customer Service

The assistance and advice provided by a company to those people who buy or use its products or services.