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

question 310

Multiple Choice

Perla 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 2,200 tenant-days, but its actual level of activity was 2,160 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 revenue variance for March would be closest to:

• A)$420 F
• B)$1,724 F
• C)$420 U
• D)$1,724 U

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Definitions:

Joint And Several Liability

A type of liability in which a third party can choose to sue the partners separately or to sue all partners jointly in one action.

Common Liability

A legal responsibility shared among multiple parties, often in cases of negligence where each party is held responsible for a portion of the damages.

Inspect The Books

The act of examining the financial records of an organization to ensure accuracy and compliance with relevant rules and laws.

Managing Partner

The executive in a partnership responsible for daily operations, decision-making, and overall management.