A company determines that the number of units sold is the cost driver for its variable selling and administrative expense budget. The product of its variable selling and administrative rate and budgeted unit sales will be:a. budgeted sales revenue b. total budgeted cash disbursements for selling and administrative expenses c. total budgeted fixed selling and administrative expenses d. total budgeted variable selling and administrative expense

Question

Business

Emilia Henson

16 August, 06:16

A company determines that the number of units sold is the cost driver for its variable selling and administrative expense budget. The product of its variable selling and administrative rate and budgeted unit sales will be:a. budgeted sales revenue b. total budgeted cash disbursements for selling and administrative expenses c. total budgeted fixed selling and administrative expenses d. total budgeted variable selling and administrative expense

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Answers (1)

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Ashtyn Lamb · Answer 1

d. total budgeted variable selling and administrative expense

Explanation:

Since in the question it said that the cost driver is number of units sold for the variable selling and administrative expense budget

So by multiplying the variable selling and administrative rate with the budgeted unit sales we can get the total budgeted variable selling and administrative expense

In mathematically,

= Variable selling and administrative rate * budgeted sales units