Question
uestion 6 Wales Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day.
uestion 6
Wales 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 February, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,730 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: The net operating income in the planning budget for February would be closest to:
$9,100 | ||
$12,123 | ||
$8,800 | ||
$11,858 |
1 points
Question 7
Which of the following comparisons best isolates the impact that changes in operating efficiency have on performance?
static planning budget and flexible budget | ||
static planning budget and actual results | ||
flexible budget and actual results | ||
master budget and static planning budget |
1 points
Question 8
In a flexible budget performance report, actual costs should be compared to the flexible budget at the original budgeted activity level.
True
False
1 points
Question 9
A revenue variance is unfavorable if the actual revenue is less than the revenue in the static planning budget.
True
False
1 points
Question 10
A spending variance is the difference between the cost in the static planning budget and the actual amount of the cost for the period.
True
False
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