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

question 200

Multiple Choice

Rhed 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 4,050 tenant-days, but its actual level of activity was 4,000 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting:
Actual results for December:
The activity variance for administrative expenses in December would be closest to:

• A) $15 U
• B) $250 U
• C) $15 F
• D) $250 F

---

Definitions:

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Fairness

The impartial and just treatment without favoritism or discrimination; in economics, often related to equitable distribution of resources and opportunities.

Behavioral Economics

A field of study that analyzes the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Supermarket Strategies

Marketing and management tactics used by supermarkets and retail stores to increase sales, customer satisfaction, and market share.