Currently set to Index
Currently set to Follow
Skip main navigation

Selling and Administrative Expenses Budget Example

Explore an example of a selling and administrative expenses budget.

Selling & Administrative Expenses Budget

  • At Royal, the selling and administrative expenses budget is divided into variable and fixed components.
  • The variable selling and administrative expenses are $0.50 per unit sold.
  • Fixed selling and administrative expenses are $70,000 per month.
  • The fixed selling and administrative expenses include $10,000 in costs – primarily depreciation – that are not cash outflows of the current month.

Example

Budget sales: April 20k, May 50k, June 30k, Q 100k. Variable S&A rate: April $0.50, May $0.50, June $0.50, Q $0.50. Variable expenses: April $10k, May $25k, June $15k, Q $50k. Fixed S&A expenses: April 70k, May 70k, June 70k, Q 210k. Total S&A expenses: April 80k, May 95k, June 85k, Q 260k. Less: Non-cash expenses: April 10k, May 10k, June 10k, Q 30k. Cash S&A expenses: April $70k, May $85k, June $75k, Q $230k

Over to you

Have you done a selling and administrative expenses budget in the past? Do you think it will be useful for you moving forward?

Selling & Administrative Expenses Budget

  • At Royal, the selling and administrative expenses budget is divided into variable and fixed components.
  • The variable selling and administrative expenses are $0.50 per unit sold.
  • Fixed selling and administrative expenses are $70,000 per month.
  • The fixed selling and administrative expenses include $10,000 in costs – primarily depreciation – that are not cash outflows of the current month.

Example

This article is from the free online

Accounting for Today’s Dynamic World

Created by
FutureLearn - Learning For Life

Our purpose is to transform access to education.

We offer a diverse selection of courses from leading universities and cultural institutions from around the world. These are delivered one step at a time, and are accessible on mobile, tablet and desktop, so you can fit learning around your life.

We believe learning should be an enjoyable, social experience, so our courses offer the opportunity to discuss what you’re learning with others as you go, helping you make fresh discoveries and form new ideas.
You can unlock new opportunities with unlimited access to hundreds of online short courses for a year by subscribing to our Unlimited package. Build your knowledge with top universities and organisations.

Learn more about how FutureLearn is transforming access to education