Asked by
Ashley Fragoso
on Nov 13, 2024
Verified
Which of the following would not appear as a fixed expense on a selling and administrative expense budget?
A) Freight-out
B) Office salaries
C) Property taxes
D) Depreciation
Fixed Expense
An expense that does not change with the level of production or sales, such as rent, salaries, and insurance.
Administrative Expense
Costs related to the general administration of a business, including office supplies, salaries of administrative personnel, and utilities.
Freight-Out
The cost of shipping goods to customers, which is typically recorded as a selling expense.
- Understand the components and calculations involved in creating a selling and administrative expense budget.
Verified Answer
SL
Learning Objectives
- Understand the components and calculations involved in creating a selling and administrative expense budget.