Choice "B" is correct. Selling and administrative budgets, like any budgets, need to be detailed in order that the key assumptions are better understood.Choice "d" is incorrect. Selling and administrative budgets are not fixed in nature; they generally are related to sales volume.Choice "c" is incorrect. Selling and administrative budgets are usually based on sales and easy to allocate by month.Choice "a" is incorrect. Selling and administrative budgets are often, but not always, a percentage of sales. When a fixed percentage is used, it is usually determined by top management.
