Asked by Chyna Forrester on Apr 29, 2024
Verified
The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable selling and administrative expense per unit.
Variable Selling
This term likely refers to variable selling expenses, which are costs that fluctuate with sales volume, such as commissions or shipping fees.
Administrative Expense
Costs related to the general operation of a business, such as office supplies, salaries of administrative staff, and utilities, but not linked directly to production or sales.
- Understand the technique for setting budgeted sales and expense levels.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
True
Explanation :
This is the correct calculation for budgeted variable selling and administrative expense.
Learning Objectives
- Understand the technique for setting budgeted sales and expense levels.