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

question 221

Multiple Choice

Razor 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 November, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,010 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:
-The revenue variance for November would be closest to:

• A) $1,607 U
• B) $1,910 U
• C) $1,607 F
• D) $1,910 F

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Definitions:

Dividend Pay-Out

The portion of a company's earnings distributed to its shareholders as dividends.

Market Efficiency

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Security Prices

The market value for tradable financial instruments such as stocks, bonds, and derivatives at any given time.