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

question 407

Multiple Choice

Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:Data used in budgeting: Actual results for November:
The revenue variance for November would be closest to:

• A) $4,450 F
• B) $4,730 U
• C) $4,730 F
• D) $4,450 U

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Definitions:

Profitability Ratios

Financial metrics that assess a firm's ability to generate profit relative to its revenue, assets, equity, or other financial metrics over a specified period.

Average Common Stockholders' Equity

The average equity stake held by common shareholders within a company, assessed over a specific period.

Net Income

Profit remaining after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Acid-test

A financial ratio that measures a company's ability to pay off its current liabilities with its quick assets.