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

question 265

Multiple Choice

Clore 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 2,900 tenant-days, but its actual level of activity was 2,920 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 spending variance for facility expenses in March would be closest to:

• A)$730 U
• B)$730 F
• C)$820 U
• D)$820 F

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Definitions:

Courteous

Displaying politeness in one's attitude and behavior towards others; mannerly and respectful.

Lowball Technique

A persuasion tactic where an initially favorable offer is made, then terms are unfavorably changed, relying on commitment to secure agreement.

Highball Technique

A persuasive strategy where an initial, excessively high request is made, knowing it will likely be rejected, in order to make a subsequent, smaller request seem more reasonable.

Proposition

A statement or assertion that expresses a judgment or opinion.