Budgeted Sales for ABC Company Are as Follows

question 31

Multiple Choice

Budgeted sales for ABC Company are as follows:
All stock is marked up to sell at its invoice cost plus 25 per cent. On average 60 per cent of credit sales are collected in the month of sale, 35 per cent in the month following sale and the remainder is uncollectable. The budgeted cost of goods sold for the month of October is:

• A) $1 360 000
• B) $1 425 000
• C) $1 520 000
• D) None of the given answers

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Definitions:

Province

A principal administrative division of certain countries or territories.

Good

A material item or service that can be bought, sold, or traded to satisfy a want or need.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.

Optimum

The most favorable condition or level at which the best possible outcome or maximum efficiency is achieved.