1. When calculating the FULL COST of a product, the insurance of a factory would be described as: A. An indirect cost B. A marginal cost C. A variable cost D. A direct cost 2. Budgeted sales for the next three months are: July June 200 August 300 250 It is expected that 30% of sales will be in cash; 70% on credit. 40% of credit sales will be received on one month's credit 50% of credit sales will be received on two month's credit 10% of credit sales will be irrecoverable (bad) debts How much cash will be received in August? A. 310 B. 250 C. 230 D. 210 3. Which of one of the following does NOT describe a budget? A. a short term plan B. a record of past transactions C. created with the intention of achieving a target D. expressed in financial terms