The selling and administrative expense budget separates fixed and variable expenses.

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The selling and administrative expense budget typically includes both fixed and variable expenses, and separates these expenses to facilitate budgeting and cost control efforts. The fixed expenses are those that do not vary with changes in the level of production or sales, while variable expenses are directly tied to these changes. By breaking out these expenses, managers can more easily identify areas where cost savings can be achieved, and develop strategies to control spending in both categories.

The Selling and Administrative Expense Budget Separates Fixed and Variable