Answer the Following Questions Using the Information Below

question 216

Multiple Choice

Answer the following questions using the information below:
The following information pertains to the January operating budget for Casey Corporation, a retailer:
Budgeted sales are $200,000 for January
Collections of sales are 50% in the month of sale and 50% the next month
Cost of goods sold averages 70% of sales
Merchandise purchases total $150,000 in January
Marketing costs are $3,000 each month
Distribution costs are $5,000 each month
Administrative costs are $10,000 each month
-For January,the amount budgeted for the nonmanufacturing costs budget is ________.

• A) $78,000
• B) $10,000
• C) $168,000
• D) $18,000

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Definitions:

Process Layout

An arrangement of resources in a manufacturing or service system according to the sequence of operations that need to be performed.

Competitive Advantage

The facet of a business that it does better than all of its competitors.

Escalation Lease

A lease agreement that includes provisions for rent increases over the lease term.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.