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Leaphart 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 2,800 tenant-days,but its actual level of activity was 2,840 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: The administrative expenses in the planning budget for May would be closest to:
Profit Center
A part or division of a business that is directly responsible for generating its own revenue and profit, allowing for assessment of performance.
General Expenses
Broad category of costs that are associated with the daily operations of a business but are not directly tied to production.
Indirect Expenses
Costs that are not directly traceable to a specific product, service, or department, such as utilities or administrative salaries.
Direct Expenses
Direct expenses are costs that can be directly attributed to a specific cost object, such as a product or service.
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