Farley Company Reported the Following Information for 2016 Operating Expenses Are: Salaries, $50,000; Depreciation, $20,000; Rent, $10,000; Utilities

question 108

Multiple Choice

Farley Company reported the following information for 2016: $\begin{array}{llcc}&\underline{\text { September }} &\underline{\text { October }}& \underline{\text { November }}&\underline{\text { December }}&\underline{\text { January }}\\\text { Budgeted purchases }&\$90,000&\$120,000&\$128,000&\$144,000&\$88,000\end{array}$
Operating expenses are: Salaries, $50,000; Depreciation, $20,000; Rent, $10,000; Utilities, $14,000.
-Operating expenses are paid during the month incurred.
-Accounts payable is used only for inventory acquisitions.
How much is the budgeted amount of cash to be paid for operating expenses in November?

• A)$202,000
• B)$74,000
• C)$94,000
• D)$222,000

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Definitions:

Punishment by Application

A behavioral psychology term referring to the addition of an undesirable stimulus to decrease a specific behavior.

Negative Reinforcement

A conditioning process where the removal of an unfavorable event or outcome after the display of a behavior increases the likelihood of that behavior being repeated in the future.

Operant Extinction

The process in behavioral psychology where the frequency of a previously reinforced behavior decreases when that behavior is no longer reinforced.

Belittling Behavior

Actions or comments meant to diminish someone’s sense of self-worth or accomplishments.