ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -1. The budgeting process starts with monitoring current spending. 2. Most short-term goals are based on activities over the next two or three years.
Detailed explanation-2: -The budgeting process usually begins with a sales budget. The sales budget reflects forecasted sales volume and is influenced by previous sales patterns, current and expected economic conditions, activities of competitors, and so forth.
Detailed explanation-3: -Budgeting for the national government involves four (4) distinct processes or phases : budget preparation, budget authorization, budget execution and accountability. While distinctly separate, these processes overlap in the implementation during a budget year.
Detailed explanation-4: -Step 1: Set Realistic Goals. Step 2: Identify your Income and Expenses. Step 3: Separate Needs and Wants. Step 4: Design Your Budget. Step 5: Put Your Plan Into Action. Step 6: Seasonal Expenses. Step 7: Look Ahead.
Detailed explanation-5: -Calculate your net income. List monthly expenses. Label fixed and variable expenses. Determine average monthly costs for each expense. Make adjustments.