ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Five
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One
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Detailed explanation-1: -The budgeting process for most large companies usually begins four to six months before the start of the financial year, while some may take an entire fiscal year to complete. Most organizations set budgets and undertake variance analysis on a monthly basis.
Detailed explanation-2: -Another name for a budget is a cash flow plan. A zero-based budget is only used for people who have zero debt. It usually takes three months for your budget to begin working well.
Detailed explanation-3: -Top performers can complete the entire process in 25 days or fewer, while bottom performers need 56 days or more. In other words, the bottom performers need to allocate at least twice as much time to create a budget. Median performers do it in 32 days.
Detailed explanation-4: -The three types of annual Government budgets based on estimates are Surplus Budget, Balanced Budget, and Deficit Budget.
Detailed explanation-5: -Step 1: Calculate your net income. The foundation of an effective budget is your net income. Step 2: Track your spending. Step 3: Set realistic goals. Step 4: Make a plan. Step 5: Adjust your spending to stay on budget. Step 6: Review your budget regularly.