Question

A plan that lists the types and amounts of selling expenses expected during the budget period is called a(n):________

Answer 1

A plan that lists the types and amounts of selling expenses expected during the budget period is called a selling expense budget.

The making of selling expense budget is the responsibility of the sales department. This budget includes selling expenses such as sales salaries,  commission of sales , advertising and  sales office rent, shipping expenses or sale supplies.

Selling expenses can be both fixed as well as variable.

Selling expenses are mostly comprised of Operating Expenses, like rent, payroll, utilities, and advertising . Direct costs are another type of spending which shows what is spent on the goods and services which are sold.

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