Paula's Kennels Is Located in a Small City in Nova

question 69

Multiple Choice

Paula's Kennels is located in a small city in Nova Scotia. The company employs three pet attendants, four pet groomers, and two front office staff who book appointments and keep records. The Kennel provides a range of services for dogs and cats including boarding, grooming, and obedience training. The grooming area includes a small retail section that carries dog and cat food, pet supplies, and toys. If the cost object is cost per day of boarding, which of the following is a direct cost?

• A) Pet food
• B) Front office staff salaries
• C) Grooming supplies
• D) Depreciation on shelving and equipment used in the grooming and retail area

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Definitions:

Hat Shop

A retail store specializing in selling hats and headwear.

Process Layout

An arrangement of resources in a manufacturing or service system according to the sequence of operations that need to be performed.

Competitive Advantage

The facet of a business that it does better than all of its competitors.

Escalation Lease

A lease agreement that includes provisions for rent increases over the lease term.