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

question 292

Multiple Choice

Kawamura 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 December, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: The administrative expenses in the planning budget for December would be closest to:

• A) $7,754
• B) $7,560
• C) $7,564
• D) $7,687

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Definitions:

New Products

Goods or services that have been recently developed or introduced to the market.

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Entrepreneurs

Individuals who organize, manage, and assume the risks of a business or enterprise, often introducing new products or services.

Production Techniques

The methods or processes used in the creation or manufacture of goods and services.