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

question 418

Multiple Choice

Smithj 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 February, the kennel budgeted for 3,500 tenant-days, but its actual level of activity was 3,490 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the revenue and spending variances report) for February would be closest to:

• A)$1,055 U
• B)$970 U
• C)$970 F
• D)$1,055 F

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Definitions:

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor performance against strategic goals.

Process-Oriented Measures

Metrics used to evaluate the effectiveness and efficiency of a process within an organization.

Balanced Scorecard

A strategic planning and management system used for aligning business activities with the vision and strategy of the organization, improving internal and external communications, and monitoring performance against strategic goals.

Concrete Actions

They refer to specific, definitive steps taken to achieve a goal or implement plans.