The selling,general,and administrative expense budget is based on the ____ budget.

Question

Quizplus · Accepted Answer

The selling, general, and administrative expenses are based on the sales budget because these expenses are incurred to support the sales function of a business. As the level of sales increases, so do the expenses incurred to support those sales, such as marketing, salaries, and other operating expenses. Therefore, it makes sense to base the selling, general, and administrative expense budget on the sales budget.

The Selling,general,and Administrative Expense Budget Is Based on the ____