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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
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