NewGen Computers Is Preparing Its Budget for 2011

question 109

Multiple Choice

NewGen Computers is preparing its budget for 2011. Sales for the year are budgeted at $1,000,000; 20% are cash sales and 80% are credit sales. The company expects to collect 60% of all credit sales in 2011. Budgeted expenses are $800,000. These expenditures include $25,000 for depreciation and $497,000 for variable manufacturing overhead. Given this information, total cash inflows from sales for 2011 would be:

• A) $800,000
• B) $680,000
• C) $480,000
• D) $455,000

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Definitions:

Position Power

The authority and influence granted to individuals by their role or position within an organization, allowing them to direct others.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates.

Frustrating Barriers

Frustrating Barriers are obstacles or hindrances that create significant stress or irritation, often impeding progress or achievement.

Normative Decision Model

A framework used in decision-making that outlines how to choose the best possible strategy based on the situation's norms and criteria.