Which of the Following Items Would Be Included in the Operating

question 36

Multiple Choice

Which of the following items would be included in the operating expense budget?

• A)Sales commissions.
• B)Raw material purchases.
• C)Cash receipts.
• D)Cost of goods sold.

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Definitions:

Income Potential

The maximum amount of money someone can earn or a business can generate under current conditions.

Dead Stock

Unsold goods that have been in inventory for a long time and are not expected to be sold due to their obsolescence or lack of demand.

Supplier Relationships

Supplier relationships pertain to the interactions and dealings between a business and its suppliers, involving the negotiation of terms, management of supply, and collaboration for mutual benefit.

Inventory

The total amount of goods or materials held in stock by a company or business.