The following budget information is available for the Arch Company for January Year 2: $ 1,040,000 720,000 6,400 280,000 Sales Cost of goods sold Utilities expense Administrative salaries. Sales commissions Advertising Depreciation on store equipment Rent on administration building Miscellaneous administrative expenses Multiple Choice - All operating expenses are paid in cash in the month incurred. Compute the total budgeted selling and administrative expenses (excluding interest) amount for January Year 2. $625,000 $568,500 5% of sales $528,000 56,000 86,000 96,000 46,000
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.
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