Dart, IncMakes and Sells Umbrellas Expenses Are Paid in the Month Incurred

question 129

Multiple Choice

Dart, Inc.makes and sells umbrellas.The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year.The following budget data are available: $\begin{array}{lll}\text { Item }&\text { Variable Cost Per Unit Sold }&\text { Monthly Fixed Cost }\\\text { Sales commissions } & \$ 0.60 & \$ 6,000 \\\text { Shipping } & 1.20 & \\\text { Advertising } & 0.30 &\\\text { Executive salaries } &&40,000 \\\text { Depreciation on office equipment } && 8,000 \\\text { Other } & 0.35 & 28,000\end{array}$ Expenses are paid in the month incurred.If the company has budgeted to sell 8,000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

• A)$16,800
• B)$18,400
• C)$101,600
• D)$19,600

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Definitions:

Loose Culture

A culture that has relaxed social norms and allows conformity by members to vary a good deal.

Uncertainty Avoidance

A cultural or organizational characteristic where members prefer structured situations over ambiguity, aiming to minimize the unpredictability of future events.

Ecological Fallacy

The error of making inferences about individuals based on aggregate data for a group.

Uncertainty-Avoidance Cultures

Cultures that have a low tolerance for uncertainty and ambiguity, leading to well-established norms and rules to minimize the unpredictability of future events.