Operating expense budget operating expenses driven by

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Unformatted text preview: t Operating Expenses driven by sales volume include sales commissions and many delivery expenses. Operating Expense Budget Operating Other expenses are not influenced by sales or other cost-driver activity and are regarded as fixed, within appropriate relevant ranges. Rent Depreciation Insurance Salaries Operating Expense Disbursements Disbursements Disbursements for operating expenses are based on the operating expense budget. Operating Expense Disbursements Disbursements For example, 50% of last month’s and this month’s wages and commissions plus miscellaneous and rent expenses may be included. The total of these disbursements is then used in preparing the cash budget. Budgeted Income Statement Budgeted The income statement will be complete after addition of the interest expense, which is computed after the cash budget has been prepared. Budgeted income from operations is often a benchmark for judging management performance. Objective 4 Objective Pre...
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