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Which of the following statements is false with respect to the selling and administrative expense budget?

Multiple Choice

$03\mathrm{.}02$

It excludes depreciation expense because selling and administrative expenses are period costs and not product costs.

It estimates the cash disbursements for selling and administrative expenses that appear in the cash budget

It includes estimated variable and fixed selling and administrative expenses.

It impacts the budgeted net operating income reported on the income statement.