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

question 245

Multiple Choice

Arkin 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 3,100 tenant-days, but its actual level of activity was 3,070 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 spending variance for expendables in May would be closest to:

• A)$784 U
• B)$1,120 F
• C)$784 F
• D)$1,120 U

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Definitions:

Intensive Distribution

A strategy where a product is made available in as many outlets as possible, maximizing visibility and accessibility to consumers.

Exclusive Distribution

A level of distribution density whereby only one retailer in a specific geographic area carries the firm’s products.

Distribution Intensity

The level of availability of a product in a particular market; can range from intensive (available everywhere) to selective or exclusive (available in few locations).

Channel Conflict

Occurs when there is a clash or discord among channel members such as manufacturers, distributors, and retailers, often due to overlapping responsibilities or competition.