A Plan That Lists the Types and Amounts of Operating

question 139

Multiple Choice

A plan that lists the types and amounts of operating expenses expected that are not included in the selling expenses budget is a:

• A) Sales budget.
• B) Cash payments budget.
• C) Selling expense budget.
• D) General and administrative expense budget.
• E) Overhead budget.

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Definitions:

Invest

The action of designating assets, typically capital, in hopes of generating financial gains.

Profit Rate

The ratio of profits generated to the amount of capital or resources invested, indicating the efficiency of an investment or business operation.

Inventory

The goods or materials a business holds for the ultimate purpose of resale or processing in the production process.

Invest

Putting money into ventures with the expectation of receiving a financial return or profit.