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

question 245

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

---

Definitions:

Working Papers

The documents used and developed by an accountant during an audit, such as notes, computations, and memoranda.

Audit Completion

The process wherein the examination of a company's financial records is concluded and results are compiled.

Attorney-client Relationship

A legal relationship established when an attorney agrees to provide legal representation to a client, characterized by confidentiality and a duty of care.

Privileged Communications

Confidential communications that are protected from disclosure in legal proceedings under certain conditions.