ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Saving should be part of your budget. It is important to put aside some money each month for savings, if possible. Start by deciding how much you could realistically save each month. Once you determine that amount, pay yourself first.

Detailed explanation-2: -Cash inflows and cash outflows are used to calculate the budget. Operating expenses are a part of the total cash outflow. Setup cost is incurred for starting the business and hence is excluded in the budget calculations.

Detailed explanation-3: -In the zero-based budget, neither expenses incurred during the previous financial years are considered nor the expenditure of the last financial year used for the coming years. Under Zero-based budgets, every activity is decided based on a Zero basis i.e. the previous expenditures are not considered.

Detailed explanation-4: -The three types of annual Government budgets based on estimates are Surplus Budget, Balanced Budget, and Deficit Budget.