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

question 29

Multiple Choice

Pong 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 December, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 1,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

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

• A)$8,001
• B)$6,300
• C)$8,164
• D)$6,042

---

Definitions:

Performance Deficiencies

Lacking the necessary skills, efforts, or capabilities to achieve desired work performance levels.

Bureaucracy

An organizational structure characterized by formal procedures, hierarchical authority, and a clear division of labor, often resulting in a perceived slow decision-making process.

Motion Studies

The systematic examination of the human motions used in a task with the goal of improving efficiency and productivity by eliminating unnecessary movements.

Job Simplification

The process of breaking down jobs into their simplest components and removing any complexities to increase the efficiency of job performance.