Cost Behavior Is Considered in Developing the Selling and Administrative

question 12

True/False

Cost behavior is considered in developing the selling and administrative expense budget as costs are designated as variable or fixed.

---

Definitions:

Unissued Stock

Unissued stock refers to shares that have been authorized in a company's charter but have not yet been sold or distributed to shareholders.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Book Value

The value of an asset as recorded on the company's balance sheet, calculated as the cost of the asset minus any depreciation.

Outstanding Bonds

Bonds issued by a company that are currently still held by investors and have not yet been redeemed.