In the selling and administrative budget, the non-cash charges (such as depreciation) are added to the total budgeted selling and administrative expenses to determine the expected cash disbursements for selling and administrative expenses

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The preparation of a selling and administrative expense budget is a common practice in budgeting, where all expected expenses related to selling and administrative functions are estimated and recorded. This budget helps in controlling costs, tracking expenses, and identifying potential areas for cost savings. Non-cash charges such as depreciation are also included in this budget, and the expected cash disbursements for selling and administrative expenses are calculated by adding non-cash charges to the total budgeted selling and administrative expenses.

In the Selling and Administrative Budget, the Non-Cash Charges (Such