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

question 117

Multiple Choice

Tessmer 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 January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Actual results for January:
The net operating income in the flexible budget for January would be closest to:

• A) $13,878
• B) $13,788
• C) $12,963
• D) $13,070

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Definitions:

Preventive

Relating to actions taken to prevent potential problems or damages before they occur.

Environmental Reporting

The process by which a company discloses information regarding its environmental impact and sustainability practices to stakeholders.

Ecological Issues

Concerns related to the impact of human activities on the environment, including pollution, loss of biodiversity, and climate change.

External Costs

Costs not borne by the producer or consumer of a good or service, but rather by third parties or the environment, often not included in the price of the good or service.