Which of the Following Is Classified as a General and Administrative

question 46

Multiple Choice

Which of the following is classified as a general and administrative expense?

• A)Salaries of sales personnel.
• B)Utility costs for the production facility.
• C)Salaries of production supervisors.
• D)Salaries of Human Resource Department personnel.
• E)None of the above.

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Definitions:

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including expenses, purchases, and other payouts.

Selling and Administrative Expense Budget

A detailed plan that estimates the expected selling and administrative expenses for a company over a specific period, helping in the management and planning of overhead costs.

Variable Expense

A cost that varies with the level of output or sales, such as raw materials or sales commissions.

Fixed Selling and Administrative Expense

Costs that do not change with the level of production or sales, such as salaries of executive personnel and advertising expenses.