When actual selling costs far exceed budgeted costs

When actual selling costs far exceed budgeted costs









a. it is considered a bad situation, as the objective is to minimize selling costs.
b. it is considered a good situation, as high selling costs automatically mean high sales.
c. it is cause for concern, since costs are only allowed to exceed the budgeted amount by a small percentage.
d. it is cause for concern, since top management will cut future budgets to reduce costs.
e. it is cause for further analysis to discover whether a specified relationship between sales and selling costs was maintained.














Answer: E


Sales Management

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