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Week 6
Week 6 Skill Building Demonstration Problem 7
Prepare a selling and administrative expense budget
.
Learning Objective 7
The Selling and Administrative Expense Budget
The
selling and administrative budget
lists the budgeted expenses for areas other
than manufacturing. Like the manufacturing overhead budget, the selling and
administrative expense budget is divided into variable and fixed cost components.
Definitions
In the case of Werthers Inc, the variable selling and administrative expense is $0.50
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Unformatted text preview: per bag of candy. The fixed selling and administrative expenses (given) are added to the variable selling and administrative expenses to arrive at the total. Lastly, to determine the cash disbursements for selling and administrative expenses, the total budgeted selling and administrative expense is adjusted by subtracting any noncash selling and administrative expenses (e.g. depreciation). Example...
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- Spring '08
- STAFF
- Managerial Accounting, Depreciation, Expense, $0.50, 6 Week, Administrative Expense Budget, Non-Cash Expense
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