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

question 157

Multiple Choice

Galante 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 May, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,380 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:
Actual results for May:
-The net operating income in the planning budget for May would be closest to:

• A)$10,300
• B)$15,926
• C)$10,130
• D)$16,115

---

Definitions:

Obvious Dangers

Hazards or risks that are apparent and should be reasonably recognized by an individual, reducing or eliminating liability for injuries resulting from such dangers.

State-of-the-Art Defense

The state-of-the-art defense is a legal argument used in product liability cases to claim that the product was made in accordance with the highest level of technology and knowledge available at the time of manufacture.

Strict Liability

A legal doctrine that holds a party responsible for damages or harm caused by their actions, without the need to prove negligence or fault.

Strict Product Liability

Liability under which, courts may hold the manufacturer, distributor, or retailer liable for any reasonably foreseeable injured party.