The Following Budget Information Is Available for Crescent Company for January

question 105

Multiple Choice

The following budget information is available for Crescent Company for January Year 2: $$\begin{array} { l c } \text { Sales } & \$ 800,000 \\\text { Cost of goods sold } & 540,000 \\\text { Utilities expense } & 2,500 \\\text { Administrative salaries } & 100,000 \\\text { Sales commisissions } & 5 \% \text { of sales } \\\text { Advertising } & 20,000 \\\text { Depreciation on store equipment } & 50,000 \\\text { Rent on administration building } & 60,000 \\\text { Miscellaneous administrative expenses } & 10,000 \\\text { Percentage of sales on credit } & 80 \%\end{array}$$ All operating expenses are paid in cash in the month incurred.The amount of expected cash outflow for selling and administrative expenses would be:

• A) $262,500.
• B) $247,500.
• C) $232,500.
• D) $312,500.

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Definitions:

Subordinates

Employees or team members who are lower in rank or position and are overseen by a superior or manager in an organizational hierarchy.

Relational Skill

The ability to work effectively with people, including the ability to motivate, coordinate, and advise other people; an important skill required at all levels of leadership—frontline supervisor, mid-level manager, and senior executive.

Effective Delegation

The skill of assigning responsibility and authority to others while maintaining overall accountability for the outcomes.

Successful Leader

An individual who achieves desired outcomes by effectively guiding or influencing the actions and beliefs of others.