THE COSTS
SELLING AND ADMINISTRATIVE EXPENSES BUDGET

 LINKS 
  • Financial Information
  • Accounting Systems
  • Introduction to Cost Accounting
  • Cost definition
  • Use of Costs
  • Classification of Costs
  • Inventory Valuation
  • Costs Behavior
  • Cost Accounting Systems
  • Standard Costs and Variances
  • Cost-Volume-Profit Analysis
  • Break-Even Point
  • Target Profit
  • Budgeting
  • Master Budget
  • Activity Based Costing (ABC)
  • Transfer Prices
  • Accounting Profession & Ethics
  • Accounting Equation
  • Financial Statements
  • Financial Statement Reporting
  • Accounts, Debits & Credits
  • The Journal
  • The General Ledger
  • The Trial Balance
  • "T" Accounts
  • Income Measurement

  • Home
    Bibliography
    Contact

    Interesting Articles

    The Art of Negotiation


    Send your article to:
    asr5@loscostos.info
      If you want your article to be published, it should the following:
    - Relationship of the article with Cost Accounting
    - Article source

    The articles will be published only if they  meet the prerequisites of quality and information.

        The sales budget  is often used as the starting point for estimating the selling and administrative expenses. For example, a budgeted increase in sales may require more advertising.
        Detailed supporting schedules are often prepared for major items in the selling and administrative expenses budget. For example, an advertising expense schedule for the marketing department should include the advertising media to be used (newspaper, direct mail, television) quantities (column inches, number of pieces, minutes) and the cost per unit. Attention to such details results in realistic budgets.
        The following table shows a selling and administrative expenses budget for the company Colt Manufacturing, Inc.:
              
    Colt Manufacturing, Inc.
      Selling and Administrative Expenses Budget
    For the Year Ending December 31, 2008
                                                                                                     .


    Selling expenses:


          Sales Salaries expense
    $715,000

          Advertising expense
    360,000

          Travel expense
    115,000

               Total selling expenses

    $1,190,000
    Administrative expenses:


          Officers' salaries expense
    $360,000

          Office salaries expense
    258,000

          Office rent expense
    34,500

          Office supplies expense
    17,500

          Miscellaneous administrative expenses
    25,000

               Total administrative expenses

    695,000
    Total selling and administrative expenses

    $1,885,000

        
                       
    Effective control results from assigning responsibility for achieving the budget to department supervisors.

    Locations of visitors to this page



    ACCOUNTING FORUM

    Free Stuff: Wallpapers -Screensavers --Games VideosEmoticonsClipartIconsMyspaceTattoos - Templates
     
    Paged created by Alfonso Salinas
      All rights reserved. Copyright ©