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.

Question

Quizplus · Accepted Answer

Non-cash charges like depreciation are not added to determine cash disbursements; they are subtracted since they do not involve actual cash outflow.

In the Selling and Administrative Budget,the Non-Cash Charges (Such as Depreciation)are