Which of the Following Statements Does Not Reflect a Difficulty

question 35

Multiple Choice

Which of the following statements does not reflect a difficulty in preparing the marketing and administrative budget?

• A) Managers have discretion about how much money is spent.
• B) Managers have discretion about the timing of when money is spent.
• C) Marketing and administrative expenses are made up of fixed and variable items.
• D) Marketing and administrative expenses normally have a one-year time horizon.

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Definitions:

Accrued Wages

Compensation that employees have acquired through work but still awaits disbursement by the employer.

Wages Expense

The total cost incurred by a company for the compensation of its employees, excluding benefits and bonuses.

Wages Payable

A liability account that records the amounts owed to employees for work that has been performed but not yet paid.

Biweekly Salaries

Compensation paid to employees on a two-week basis, typically resulting in 26 pay periods per year.