The Following Budget Information Is Available for Crescent Company for January

question 111

Multiple Choice

The following budget information is available for Crescent Company for January Year 2: $\begin{array}{llr} \text { Sales } &\$800,000\\ \text { Cost of goods sold } &540,000\\ \text { Utilities expense } &2,500\\ \text {Administrative salaries } &100,000\\ \text { Sales commissions } & \text {\( 5 \% \) of Sales}\\ \text { Advertising } &20,000\\ \text { Depreciation on store equipment } &50,000\\ \text {Rent on administration building } &60,000\\ \text { Miscellaneous administrative expenses} &10, 000\\\text { Percentacre of sales on credit }&80\%\end{array}$ All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be:

• A) $262,500.
• B) $247,500.
• C) $232,500.
• D) $312,500.

---

Definitions:

Chi-squared Test

A statistical hypothesis test used to determine whether there is a significant difference between expected frequencies and observed frequencies in one or more categories.

Nominal Data

A type of data that consists of names, labels, or categories without any implied order or ranking among them.

Technique

A specialized procedure or skill set used to accomplish a specific task effectively.

Nominal Data

A type of categorical data where categories are named labels without any intrinsic ordering.