1 What are the three (3) major objectives of budgeting 5 Under what circumstances would static budget be appropriate 7 Why should the production requirements set forth in the production budget be carefully coordinated with the sales budget 8 Why should the timing of direct materials purchases be closely coordinated with the production budget Flexible budget for selling and administrative expenses for a service company Social Media Inc uses flexible budgets that are based on the following data Sales commissions 15 of sales Advertising expense 20 of sales Miscellaneous administrative expenses $7,000 per month plus 10 of sales Office salaries expense $35,000 per month Customer support expenses $11,000 per month plus 18 sales Research and development expense $35,000 per month How flexible selling and administrative expenses budget for June 2016 for sales volume $400,000, $500,000 and $600,000

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1 What are the three (3) major objectives of budgeting  5  Under what circumstances would static budget be appropriate  7  Why should the production requirements set forth in the production budget be carefully coordinated with the sales budget  8  Why should the timing of direct materials purchases be closely coordinated with the production budget  Flexible budget for selling and administrative expenses for a service company Social Media Inc  uses flexible budgets that are based on the following data  Sales commissions                                                             15  of sales Advertising expense                                                          20  of sales Miscellaneous administrative expenses                           $7,000 per month plus 10  of sales Office salaries expense                                                      $35,000 per month Customer support expenses                                             $11,000 per month plus 18  sales Research and development expense                                $35,000 per month How flexible selling and administrative expenses budget for June 2016 for sales volume $400,000, $500,000 and $600,000

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Fundamentals of Cost Accounting

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Fundamentals of Cost Accounting

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