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

question 179

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 overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for November would be closest to:

• A) $3,520 F
• B) $3,428 U
• C) $3,520 U
• D) $3,428 F

Realize the role of preparedness and willingness to make concessions in successful negotiations.

Comprehend the concept of the bottom line or breakpoint in negotiations.

Understand the strategic use of verbal and non-verbal communication to influence negotiation outcomes.

Recognize the importance and impact of having alternatives in negotiations.

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Definitions:

Administrative Expenses

Expenses that are not directly tied to a specific function such as manufacturing, production, or sales, but necessary for the overall day-to-day operations of a company.

Product Costs

Costs that are directly incurred in the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses that are not directly tied to production activities and are expensed in the period they are incurred, such as administrative salaries and marketing costs.

Variable Costs

Costs that vary directly with the level of production or volume of output, such as materials and labor directly involved in production.