Week 6, LO 7 Demo

Week 6, LO 7 Demo - per bag of candy. The fixed selling and...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

This note was uploaded on 04/21/2011 for the course ACTG 211 taught by Professor Staff during the Spring '08 term at Ill. Chicago.

Ask a homework question - tutors are online