You Are a Landlord for an Office Building

question 14

Essay

You are a landlord for an office building.You just received a claim letter from a tenant asking for a refund of $2,000 for a duplicate rent payment in June.You check your records and find out that the June rent was deducted twice from the tenant's bank account.You think this must have been a bank error, but the double amount was transferred to your bank account.Write an adjustment letter to the tenant, and enclose a refund check.Write only the body of the letter, omitting the letter addresses, salutation, complimentary close, and enclosure line.

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Definitions:

Activity-Based Costing

An approach to costing that recognizes organizational activities and distributes each activity's costs to every product and service, reflecting their real consumption.

High-Low Method

A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Variable Cost

A cost that varies directly with the level of production or sales volume, such as materials and labor costs.

Regression Study

An analysis technique used to determine the relationship between dependent and independent variables, often used for prediction and forecasting.