Miracle Enterprises sells electronics in retail outlets and on the Internet. It uses activity-based budgeting in the preparation of its selling, general, and administrative expense budget. Which of the following costs would the company likely classify as a unit-level expense on its budget?
A) MEDIA ADVERTISINGB) RETAIL OUTLET SALES COMISSIONSC) SALARIES OF WEB-SITE MAINTENCE PERSONNELD) ADMINISTRATIVE SALARIESE) SALARY OF THE SALE MANAGER EPLOYED AT STORE NO 23

B) RETAIL OUTLET SALES COMMISSIONS

Explanation:

The unit-level expense is an expense that is incurred when each unit is produced in terms of performing services or making a product

The example can be direct material, direct labor, etc

Moreover, the selling, general and administrative expenses involves the selling expenses like - advertising cost, commission on sales, etc that used in activity-based budgeting

In the given situation, the enterprise sells electronics in retails outlets that reflect the retail outlet sales commission as a unit-level expense

a. $48.75

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