In the selling and administrative budget, the non-cash charges (such as depreciation) are deducted from 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 such as depreciation do not involve any cash outflow, so they should be deducted from the budgeted selling and administrative expenses to determine only the expected cash disbursements for these expenses.

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