ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Before reviewing your wants
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After considering entertainment expenses
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Before looking at your needs
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After your wants but before you needs
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Detailed explanation-1: -Recurring expenses are expenses that can never be stopped. Recurring expenses should be planned for after looking at your wants.
Detailed explanation-2: -The first step is knowing what the company goals are regarding spending, revenue, expansion and new projects. You need to know what the projected expenses are, and you need to gather data from the heads of each department to determine a realistic projection for income.
Detailed explanation-3: -Identify recurring expenses first: When budgeting, always ensure to account for all monthly recurring expenditures before accounting for your variable expenses.
Detailed explanation-4: -Gather your financial statements. These documents, such as bills, mortgage statements, and account statements, can help you see exactly where your money is going. Looking for charges you make regularly can help you determine your largest expenses.
Detailed explanation-5: -Calculate your net income. List monthly expenses. Label fixed and variable expenses. Determine average monthly costs for each expense. Make adjustments.