Fast Track Company, Which Sells Electronics in Retail Outlets and on the Internet

question 20

Multiple Choice

Fast Track Company, which sells electronics in retail outlets and on the Internet, uses activity-based budgeting in the preparation of its selling, general, and administrative expense budget. Which of the following costs would the company likely classify as a unit-level expense on its budget?

• A)Media advertising.
• B)Retail outlet sales commissions.
• C)Salaries of web-site maintenance personnel.
• D)Administrative salaries.
• E)Salary of the sales manager employed at Store No. 23.

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Definitions:

Software Bugs

Errors or flaws in a computer program that can cause it to produce incorrect or unexpected results, or to behave in unintended ways.

Potential

Potential refers to the inherent ability or capacity of an entity, individual, or system to develop into something greater in the future.

Proprietary

Information, products, or technologies owned by an individual or a company, often protected by intellectual property rights.

Purchased Software

Computer programs and applications that have been bought and licensed for use, as opposed to being freely obtained or open source.