Which of the following budgets are prepared before the production budget? Option

Question

Which of the following budgets are prepared before the production budget? Option B Option C Option D Option A The selling and administrative expense budget of Ruffing Corporation is based on budgeted unit sales, which includes depreciation of $16,800 per month. The remainder of the fixed selling and administrative expense represents current cash flows. What should the cash disbursements for selling and administrative expenses on the February selling and administrative expense budget be? $110,400 $38,880 If a cost object such as a product or customer has a negative green margin, then its yellow margin may he either positive or negative. its yellow margin will he zero. its yellow margin will be positive. its yellow margin will he negative.

Explanation / Answer

18. Correct asnwer is Option C. Sales budget is prepared before the production budget.

19. Correct asnwer is Option C. $93,600.00 (4800*$8.10 + $71,520.00 - $16,800.00).

20. Correct asnwer is Option D. Its yellow margin will be negative.

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