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

question 107

Multiple Choice

Sorrow 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 2,300 tenant-days, but its actual level of activity was 2,350 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

Actual results for November:


-The activity variance for administrative expenses in November would be closest to:

• A)$20 U
• B)$310 F
• C)$310 U
• D)$20 F

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Definitions:

Risk Breakdown Structure

A hierarchical decomposition of risks associated with a project, categorized systematically for analysis and management.

Risk Evaluation

The process of identifying potential risks in a project and assessing the likelihood and potential impact of those risks.

Potential Risk

The possibility of an event occurring that could negatively affect the accomplishment of objectives.

Potential Impact

A possible effect or outcome that a specific action or event might have on something or someone.