The Operating Expense Budget Is Based on The

question 35

Multiple Choice

The operating expense budget is based on the:

• A)sales budget.
• B)production budget.
• C)manufacturing overhead budget.
• D)cash budget.

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Definitions:

Existing Firms

Businesses that are currently operational and have been established in the market for a period of time.

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Long Run

A period during which all factors of production and costs are variable, allowing all inputs to be adjusted.

Profit-Maximizing

A strategy where a company seeks to achieve the highest possible profit, often by adjusting output levels or prices.