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

question 250

Multiple Choice

Ordway 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 June, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Data used in budgeting:

Actual results for June:

-The net operating income in the flexible budget for June would be closest to:

• A)$8,713
• B)$9,159
• C)$8,466
• D)$9,570

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Definitions:

Takings Clause

Part of the Fifth Amendment of the U.S. Constitution, stating that private property cannot be taken for public use without just compensation.

Eminent Domain

A governmental power whereby the government can take or condemn private property for a public purpose on the payment of just compensation.

Private Property

Land or possessions owned by individuals or corporations, not by the government or public as a whole.

Equal Protection

A legal principle under the Fourteenth Amendment of the U.S. Constitution, ensuring that no state shall deny to any person within its jurisdiction the equal protection of the laws.