If Miguel Expects to Earn a Higher Income Next Month,he

question 28

Multiple Choice

If Miguel expects to earn a higher income next month,he may choose to

• A)save more now and spend less of his current income on goods and services.
• B)save less now and spend more of his current income on goods and services.
• C)decrease his current demand for goods and services.
• D)move along his current demand curves for goods and services.

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Definitions:

Selling and Administrative Expense Budget

An estimation of the costs related to sales and administrative activities for a specific period, used for planning and control.

Direct Materials

Raw materials that can be directly associated with the production of specific goods or services.

Direct Labor

The wages and benefits paid for labor that is directly involved in the production of goods or the provision of services.

Variable Selling

This term likely refers to variable selling expenses, which are costs that fluctuate with sales volume, such as commissions or shipping fees.