The selling and administrative expense budget of Ruffing Corporation is based on budgeted unit sales, which are 4,800 units for
February. The variable selling and administrative expense is $8.10 per unit. The budgeted fixed selling and administrative expense is $71,520 per month, which includes depreciation of $16,800 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the February selling and administrative expense budget should be:a) $38,880b) $54,720c) $110,400d) $93,600
The question is about <em><u>cash </u></em>disbursements for this item
According to the information the monthly expenses are of
$71,520
but within which are depreciation expenses, which do not mean a cash outlay, for 16,800
On the other hand it is necessary to add the variable expenses of the selling and administrative expenses for this month, that correspond to 4,800 units for $ 8.10 of cost = 38,880
So
+71,520 Fixed expenses
-16,800 Non-cash expenses
+38,880 Variable expenses
=$93,600 cash disbursements for selling and administrative expenses on February
The term that is being described above is EXPEDITING. From the term itself, expedite means to a process of making something happen sooner or immediately. When it comes to business, expediting is a term that refers to the management of purchases wherein the products are being delivered and arrived in a timely fashion while maintaining its quality.
An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company.
An intrapreneur works inside a company to develop an innovative idea or project that will enhance the company's future.
The intrapreneur is generally given autonomy to work on a project that may have a considerable impact on the company. Over time, an intrapreneur may turn into an entrepreneur.
