The Following Details Have Been Extracted from the Budget of a Merchandising

question 151

Multiple Choice

The following details have been extracted from the budget of a merchandising company. $$\begin{array} { | l | l | } \hline \text { Rent Expense } & \$ 8800 \text { per month } \\\hline \text { Depreciation Expense } & \$ 3500 \text { per month } \\\hline \text { Insurance Expense } & \$ 1250 \text { per month } \\\hline \text { Miscellaneous Expense } & 4 \% \text { of sales, paid as incurred } \\\hline \text { Commissions Expense } & 10 \% \text { of sales } \\\hline \text { Salaries Expense } & \$ 8000 \text { per month } \\\hline\end{array}$$ $$\begin{array} { | c | l | l | l | } \hline \text { Dec } & \text { Jan } & \text { Feb } & \text { March } \\\hline \text { Sales } \$ 65,000 & \$ 70,000 & \$ 85,000 & \$ 100,000 \\\hline\end{array}$$ Commissions and salaries expenses are paid 50% in the month to which they are incurred and the balance in the next month.
Rent and miscellaneous expenses are paid as and when they occur. Insurance is prepaid at the beginning of the quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the next year.

• A) $33,950
• B) $54,150
• C) $88,100
• D) $30,100

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Definitions:

Descriptive Measure

A descriptive measure provides a summary or analysis that captures the characteristics or features of a dataset, often in terms of central tendency or variability.

Population

The entire set of individuals or objects of interest or the measurements obtained from all individuals or objects of interest.

Parameter

A value that describes a characteristic of a population, such as its mean or standard deviation, often used in statistical models and inference.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a dataset deviate from the mean.