Which of the Following Describes the Selling and Administrative Expenses

question 133

Multiple Choice

Which of the following describes the selling and administrative expenses budget?

• A) It aids in planning to ensure the company has adequate inventory on hand.
• B) It captures the variable and fixed components of selling and administrative expenses of the business.
• C) It depicts the breakdown of sales based on terms of collection.
• D) It shows the cash flows related to the selling and administrative expenses and helps in planning to ensure the business has adequate cash.

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