In January ABC budgets to incur $100,000 of administrative expenses. 90% of these expenses will be paid in the month and the remaining 10% are paid the following month. Included in the $100,000 of administrative expenses is depreciation of $8,000. The amount owing for administrative expenses at the start of January is $15,000. How much will ABC disburse in cash for administrative expenses in January? Select one: O $92,000 O $100,000 $105,000 $97,800
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![In January ABC budgets to incur $100,000 of administrative expenses. 90% of these
expenses will be paid in the month and the remaining 10% are paid the following month.
Included in the $100,000 of administrative expenses is depreciation of $8,000. The amount
owing for administrative expenses at the start of January is $15,000.
How much wil ABC disburse in cash for administrative expenses in January?
Select one:
$92,000
$100,000
$105,000
$97,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F963efa39-4808-43ff-b46a-57ddc557fc1f%2F595c8205-d7cc-45a4-ba35-197cb2ed71e8%2Fwh0qfzr_processed.jpeg&w=3840&q=75)
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