The Following Selected Data Pertain to the Inborne Corporation July's Cash Disbursements Are Expected to Be:
A)$404,000

question 49

Multiple Choice

The following selected data pertain to the Inborne Corporation: $\begin{array} { | l | r | } \hline \text { Cash operating expenses, July 1-31 } & \$ 180,000 \\\hline \text { Depreciation } & 60,000 \\\hline \text { Merchandise purchases in July } & 560,000 \\\hline \text { listimated payments in July for purchases in June } & 220,000 \\\hline \text { Estimated payments in July for purchases prior to June } & 50,000 \\\hline \text { Estimated payments in July for purchases in July } & 40 \% \\\hline\end{array}$ July's cash disbursements are expected to be:

• A)$404,000.
• B)$464,000.
• C)$674,000.
• D)$734,000
• E)$786,000.

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors hold true.

Variable Cost

Costs that vary directly with the level of production or service provision, such as materials, labor, and utilities consumed in the production process.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output, including materials and labor.

Period Costs

Period costs are expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.