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

question 172

Multiple Choice

The following details have been extracted from the budget of a merchandising company. $$\begin{array} { | l | l | } \hline \text { Rent Expense } & \$ 8,600 \text { per month } \\\hline \text { Depreciation Expense } & \$ 3,500 \text { per month } \\\hline \text { Insurance Expense } & \$ 2,000 \text { per month } \\\hline \text { Miscellaneous Expense } & 2 \% \text { of sales, paid as incurred } \\\hline \text { Commissions Expense } & 8 \% \text { of sales } \\\hline \text { Salaries Expense } & \$ 6,000 \text { per month } \\\hline\end{array}$$ $$\begin{array} { | l | l | l | l | } \hline \text { Dec } & \text { Jan } & \text { Feb } & \text { March } \\\hline \text { Sales } \$ 70,000 & \$ 75,000 & \$ 90,000 & \$ 105,000 \\\hline\end{array}$$ 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) $25,600
• B) $49,800
• C) $75,400
• D) $27,900

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Definitions:

Myers-Briggs Type Indicator

A personality assessment tool that categorizes individuals into 16 distinct personality types based on preferences in how they perceive the world and make decisions.

Dichotomies

A division or contrast between two things that are represented as being opposed or entirely different.

MMPI-A

The Minnesota Multiphasic Personality Inventory-Adolescent, a psychological assessment tool designed specifically for teenagers.

Normal Aspects

Characteristics or behaviors that are considered typical or expected within a certain context or population.