14.3 Operating Budget Calculations - Others

Question 1

Which one of the following statements regarding selling and administrative budgets is most accurate?

A. Selling and administrative budgets are usually optional.
B. Selling and administrative budgets are fixed in nature.
C. Selling and administrative budgets are difficult to allocate by month and are best presented as one number for the entire year
D. Selling and administrative budgets need to be detailed in order that the key assumptions can be better understood.

Answer 1

D. Selling and administrative budgets need to be detailed in order that the key assumptions can be better understood.

Question 2

Sales and administrative budgets are prepared after the

Answer 2

sales budget