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

question 264

Multiple Choice

Dinham 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 March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Actual results for March:

-The overall revenue and spending variance (i.e.,the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for March would be closest to:

• A) $1,960 F
• B) $1,960 U
• C) $1,396 U
• D) $1,396 F

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Definitions:

New-Product Strategy Development

The stage of the new-product development process that defines the role for a new product in terms of the firm’s overall objectives.

Idea Generation

The creative process of generating, developing, and curating new ideas, which can serve as solutions to problems or lead to the development of new products, processes, or services.

Service

A service is an intangible economic activity offered by one party to another, often involving human or mechanical efforts to meet the needs or wants of the service buyer.

Good

A tangible product or item that consumers purchase to meet their needs or desires.