{"id":474,"date":"2018-04-17T23:26:15","date_gmt":"2018-04-17T23:26:15","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/?post_type=chapter&#038;p=474"},"modified":"2024-04-29T17:20:00","modified_gmt":"2024-04-29T17:20:00","slug":"selling-and-administrative-budget","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/chapter\/selling-and-administrative-budget\/","title":{"raw":"Selling and Administrative Budget","rendered":"Selling and Administrative Budget"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Create a selling and administrative expense budget<\/li>\r\n<\/ul>\r\n<\/div>\r\nHupana Running Company knows all about production, and we have a good handle on how many pairs of shoes we are going to make, and how much raw materials and overhead go into each pair. But how do we get those orders from customers? First, we need to consider our expenses as a business. Our sales commissions, marketing plans, data entry personnel, insurance, property taxes and all the other stuff that goes into operating a business.\r\n\r\nSome of these expenses are variable, like sales commissions, and data entry personnel, while other expenses, like insurance and property taxes happen no matter how many pairs of shoes we make or sell. These are our fixed expenses.\u00a0 Therefore, we are going to make some assumptions so we can start work on this budget.\r\n<ol>\r\n \t<li style=\"font-weight: 400;\">Based on prior year\u2019s actual expenses, let\u2019s assume that the variable selling and administrative expenses are $5 per pair of shoes.<\/li>\r\n \t<li style=\"font-weight: 400;\">Let\u2019s assume that executive salaries, insurance, marketing, property taxes and depreciation are our fixed expenses.<\/li>\r\n \t<li style=\"font-weight: 400;\">All of the expenses are equally distributed over the four quarters of the year.<\/li>\r\n<\/ol>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<thead>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" colspan=\"6\">Hupana Running Company Selling and Administrative Expense Budget<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Quarter<\/th>\r\n<th style=\"width: 6.95049%; height: 15px; text-align: right;\" scope=\"col\">Q1<\/th>\r\n<th style=\"width: 7.38724%; height: 15px; text-align: right;\" scope=\"col\">Q2<\/th>\r\n<th style=\"width: 7.49642%; height: 15px; text-align: right;\" scope=\"col\">Q3<\/th>\r\n<th style=\"width: 7.60553%; height: 15px; text-align: right;\" scope=\"col\">Q4<\/th>\r\n<th style=\"width: 6.51386%; height: 15px;\" scope=\"col\">Total<\/th>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Budgeted unit sales<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\">500<\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\">500<\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\">500<\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\">500<\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\">2000<\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Variable selling and administrative expense per case<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\">$5<\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\">$5<\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\">$5<\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\">$5<\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\">$5<\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\"><span style=\"text-decoration: underline;\"><strong>Variable selling and administrative expense-total<\/strong><\/span><\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$2,500<\/strong><\/span><\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$2,500<\/strong><\/span><\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$2,500<\/strong><\/span><\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$2,500<\/strong><\/span><\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$10,000<\/strong><\/span><\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\"><\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\"><\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\"><\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\"><\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\"><\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\"><span style=\"text-decoration: underline;\"><strong>Fixed selling and administrative expense<\/strong><\/span><\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\"><\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\"><\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\"><\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\"><\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\"><\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Marketing<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\">$1,500<\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\">$1,500<\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\">$1,500<\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\">$1,500<\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\">$6,000<\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Executive salaries<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\">$5,000<\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\">$5,000<\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\">$5,000<\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\">$5,000<\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\">$20,000<\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Insurance<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\">$2,000<\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Property taxes<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\">$250<\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\">$250<\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\">$250<\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\">$250<\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\">$1,000<\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Depreciation expense<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\">$2,000<\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Total fixed selling and administrative expenses<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\">$7,750<\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\">$7,750<\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\">$7,750<\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\">$7,750<\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\">$31,000<\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Total selling and administrative expenses<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\"><span style=\"text-decoration: underline;\">$10,250<\/span><\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\"><span style=\"text-decoration: underline;\">$10,250<\/span><\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\"><span style=\"text-decoration: underline;\">$10,250<\/span><\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\"><span style=\"text-decoration: underline;\">$10,250<\/span><\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\"><span style=\"text-decoration: underline;\">$41,000<\/span><\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Less depreciation<\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\">$500<\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\">$2,000<\/td>\r\n<\/tr>\r\n<tr style=\"height: 15px;\">\r\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\"><strong>Cash disbursements for selling and administrative expense<\/strong><\/th>\r\n<td style=\"width: 6.95049%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$9,750<\/strong><\/span><\/td>\r\n<td style=\"width: 7.38724%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$9,750<\/strong><\/span><\/td>\r\n<td style=\"width: 7.49642%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$9,750<\/strong><\/span><\/td>\r\n<td style=\"width: 7.60553%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$9,750<\/strong><\/span><\/td>\r\n<td style=\"width: 6.51386%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$39,000<\/strong><\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<div class=\"textbox shaded\"><strong>Note:<\/strong> because depreciation expense is a non-cash expense, we can subtract it for our cash budget preparation, but we still need the number for our overall budget and financial statements to get an overall picture of the health of our company!<\/div>\r\nWhat do you notice about our selling and administrative budget? First, we use the budgeted unit sales off of the sales budget we created first! So you can start to see how everything is tied together.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Questions<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/bedd712a-77b1-433e-9a17-44586afa41bf\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Create a selling and administrative expense budget<\/li>\n<\/ul>\n<\/div>\n<p>Hupana Running Company knows all about production, and we have a good handle on how many pairs of shoes we are going to make, and how much raw materials and overhead go into each pair. But how do we get those orders from customers? First, we need to consider our expenses as a business. Our sales commissions, marketing plans, data entry personnel, insurance, property taxes and all the other stuff that goes into operating a business.<\/p>\n<p>Some of these expenses are variable, like sales commissions, and data entry personnel, while other expenses, like insurance and property taxes happen no matter how many pairs of shoes we make or sell. These are our fixed expenses.\u00a0 Therefore, we are going to make some assumptions so we can start work on this budget.<\/p>\n<ol>\n<li style=\"font-weight: 400;\">Based on prior year\u2019s actual expenses, let\u2019s assume that the variable selling and administrative expenses are $5 per pair of shoes.<\/li>\n<li style=\"font-weight: 400;\">Let\u2019s assume that executive salaries, insurance, marketing, property taxes and depreciation are our fixed expenses.<\/li>\n<li style=\"font-weight: 400;\">All of the expenses are equally distributed over the four quarters of the year.<\/li>\n<\/ol>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<thead>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" colspan=\"6\">Hupana Running Company Selling and Administrative Expense Budget<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Quarter<\/th>\n<th style=\"width: 6.95049%; height: 15px; text-align: right;\" scope=\"col\">Q1<\/th>\n<th style=\"width: 7.38724%; height: 15px; text-align: right;\" scope=\"col\">Q2<\/th>\n<th style=\"width: 7.49642%; height: 15px; text-align: right;\" scope=\"col\">Q3<\/th>\n<th style=\"width: 7.60553%; height: 15px; text-align: right;\" scope=\"col\">Q4<\/th>\n<th style=\"width: 6.51386%; height: 15px;\" scope=\"col\">Total<\/th>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Budgeted unit sales<\/th>\n<td style=\"width: 6.95049%; height: 15px;\">500<\/td>\n<td style=\"width: 7.38724%; height: 15px;\">500<\/td>\n<td style=\"width: 7.49642%; height: 15px;\">500<\/td>\n<td style=\"width: 7.60553%; height: 15px;\">500<\/td>\n<td style=\"width: 6.51386%; height: 15px;\">2000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Variable selling and administrative expense per case<\/th>\n<td style=\"width: 6.95049%; height: 15px;\">$5<\/td>\n<td style=\"width: 7.38724%; height: 15px;\">$5<\/td>\n<td style=\"width: 7.49642%; height: 15px;\">$5<\/td>\n<td style=\"width: 7.60553%; height: 15px;\">$5<\/td>\n<td style=\"width: 6.51386%; height: 15px;\">$5<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\"><span style=\"text-decoration: underline;\"><strong>Variable selling and administrative expense-total<\/strong><\/span><\/th>\n<td style=\"width: 6.95049%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$2,500<\/strong><\/span><\/td>\n<td style=\"width: 7.38724%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$2,500<\/strong><\/span><\/td>\n<td style=\"width: 7.49642%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$2,500<\/strong><\/span><\/td>\n<td style=\"width: 7.60553%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$2,500<\/strong><\/span><\/td>\n<td style=\"width: 6.51386%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$10,000<\/strong><\/span><\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\"><\/th>\n<td style=\"width: 6.95049%; height: 15px;\"><\/td>\n<td style=\"width: 7.38724%; height: 15px;\"><\/td>\n<td style=\"width: 7.49642%; height: 15px;\"><\/td>\n<td style=\"width: 7.60553%; height: 15px;\"><\/td>\n<td style=\"width: 6.51386%; height: 15px;\"><\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\"><span style=\"text-decoration: underline;\"><strong>Fixed selling and administrative expense<\/strong><\/span><\/th>\n<td style=\"width: 6.95049%; height: 15px;\"><\/td>\n<td style=\"width: 7.38724%; height: 15px;\"><\/td>\n<td style=\"width: 7.49642%; height: 15px;\"><\/td>\n<td style=\"width: 7.60553%; height: 15px;\"><\/td>\n<td style=\"width: 6.51386%; height: 15px;\"><\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Marketing<\/th>\n<td style=\"width: 6.95049%; height: 15px;\">$1,500<\/td>\n<td style=\"width: 7.38724%; height: 15px;\">$1,500<\/td>\n<td style=\"width: 7.49642%; height: 15px;\">$1,500<\/td>\n<td style=\"width: 7.60553%; height: 15px;\">$1,500<\/td>\n<td style=\"width: 6.51386%; height: 15px;\">$6,000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Executive salaries<\/th>\n<td style=\"width: 6.95049%; height: 15px;\">$5,000<\/td>\n<td style=\"width: 7.38724%; height: 15px;\">$5,000<\/td>\n<td style=\"width: 7.49642%; height: 15px;\">$5,000<\/td>\n<td style=\"width: 7.60553%; height: 15px;\">$5,000<\/td>\n<td style=\"width: 6.51386%; height: 15px;\">$20,000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Insurance<\/th>\n<td style=\"width: 6.95049%; height: 15px;\">$500<\/td>\n<td style=\"width: 7.38724%; height: 15px;\">$500<\/td>\n<td style=\"width: 7.49642%; height: 15px;\">$500<\/td>\n<td style=\"width: 7.60553%; height: 15px;\">$500<\/td>\n<td style=\"width: 6.51386%; height: 15px;\">$2,000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Property taxes<\/th>\n<td style=\"width: 6.95049%; height: 15px;\">$250<\/td>\n<td style=\"width: 7.38724%; height: 15px;\">$250<\/td>\n<td style=\"width: 7.49642%; height: 15px;\">$250<\/td>\n<td style=\"width: 7.60553%; height: 15px;\">$250<\/td>\n<td style=\"width: 6.51386%; height: 15px;\">$1,000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Depreciation expense<\/th>\n<td style=\"width: 6.95049%; height: 15px;\">$500<\/td>\n<td style=\"width: 7.38724%; height: 15px;\">$500<\/td>\n<td style=\"width: 7.49642%; height: 15px;\">$500<\/td>\n<td style=\"width: 7.60553%; height: 15px;\">$500<\/td>\n<td style=\"width: 6.51386%; height: 15px;\">$2,000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Total fixed selling and administrative expenses<\/th>\n<td style=\"width: 6.95049%; height: 15px;\">$7,750<\/td>\n<td style=\"width: 7.38724%; height: 15px;\">$7,750<\/td>\n<td style=\"width: 7.49642%; height: 15px;\">$7,750<\/td>\n<td style=\"width: 7.60553%; height: 15px;\">$7,750<\/td>\n<td style=\"width: 6.51386%; height: 15px;\">$31,000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Total selling and administrative expenses<\/th>\n<td style=\"width: 6.95049%; height: 15px;\"><span style=\"text-decoration: underline;\">$10,250<\/span><\/td>\n<td style=\"width: 7.38724%; height: 15px;\"><span style=\"text-decoration: underline;\">$10,250<\/span><\/td>\n<td style=\"width: 7.49642%; height: 15px;\"><span style=\"text-decoration: underline;\">$10,250<\/span><\/td>\n<td style=\"width: 7.60553%; height: 15px;\"><span style=\"text-decoration: underline;\">$10,250<\/span><\/td>\n<td style=\"width: 6.51386%; height: 15px;\"><span style=\"text-decoration: underline;\">$41,000<\/span><\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\">Less depreciation<\/th>\n<td style=\"width: 6.95049%; height: 15px;\">$500<\/td>\n<td style=\"width: 7.38724%; height: 15px;\">$500<\/td>\n<td style=\"width: 7.49642%; height: 15px;\">$500<\/td>\n<td style=\"width: 7.60553%; height: 15px;\">$500<\/td>\n<td style=\"width: 6.51386%; height: 15px;\">$2,000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<th style=\"width: 64.0466%; height: 15px;\" scope=\"row\"><strong>Cash disbursements for selling and administrative expense<\/strong><\/th>\n<td style=\"width: 6.95049%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$9,750<\/strong><\/span><\/td>\n<td style=\"width: 7.38724%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$9,750<\/strong><\/span><\/td>\n<td style=\"width: 7.49642%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$9,750<\/strong><\/span><\/td>\n<td style=\"width: 7.60553%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$9,750<\/strong><\/span><\/td>\n<td style=\"width: 6.51386%; height: 15px;\"><span style=\"text-decoration: underline;\"><strong>$39,000<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"textbox shaded\"><strong>Note:<\/strong> because depreciation expense is a non-cash expense, we can subtract it for our cash budget preparation, but we still need the number for our overall budget and financial statements to get an overall picture of the health of our company!<\/div>\n<p>What do you notice about our selling and administrative budget? First, we use the budgeted unit sales off of the sales budget we created first! So you can start to see how everything is tied together.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Questions<\/h3>\n<p>\t<iframe id=\"assessment_practice_bedd712a-77b1-433e-9a17-44586afa41bf\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/bedd712a-77b1-433e-9a17-44586afa41bf?iframe_resize_id=assessment_practice_id_bedd712a-77b1-433e-9a17-44586afa41bf\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-474\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Selling and Administrative Budget. <strong>Authored by<\/strong>: Freedom Learning Group. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":62559,"menu_order":15,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Selling and Administrative Budget\",\"author\":\"Freedom Learning Group\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"439a0a45-2ebc-4a2d-83c0-041d03396485, 79d28ee8-2d6b-49b9-9799-702d500fd1fd","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-474","chapter","type-chapter","status-publish","hentry"],"part":108,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/users\/62559"}],"version-history":[{"count":14,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/474\/revisions"}],"predecessor-version":[{"id":4111,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/474\/revisions\/4111"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/parts\/108"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/474\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/media?parent=474"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapter-type?post=474"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/contributor?post=474"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/license?post=474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}