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

Understand the criteria and considerations for something to serve as money.

Understand the concepts and techniques of capital budgeting, including net present value, internal rate of return, and payback period.

Identify and calculate relevant costs, including sunk costs, opportunity costs, and incremental costs in decision-making.

Understand the impact of depreciation on capital budgeting decisions.

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Definitions:

Securities Exchange Act of 1934

A U.S. federal law regulating the secondary trading of securities (stocks, bonds, and debentures) to protect investors against malpractice.

White-collar Crime

Non-violent crime committed typically by individuals in professional roles for financial gain, involving deceit or violation of trust.

Disclosure

Disclosure involves the act of making information or data known or public, especially information that was previously unknown or kept confidential.

Uniform Securities Act

A model law designed to guide states in regulating the sale of securities to protect investors from fraud.