ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If you write a zero-based budget every month, it is not necessary to reconcile your account. Budgeting is crucial to your financial success. Writing and following a zero-based budget will help you avoid overspending and impulse purchases. A debit card cannot be used for online purchases.

Detailed explanation-2: -Zero-based budgeting allocates every dollar of income. It’s different from traditional budgeting because it starts with a new budget, typically each month, instead of using the previous budget as a starting point. Zero-based budgeting can help you make thoughtful decisions about how to use income.

Detailed explanation-3: -Which of the following is an advantage of zero-based budgeting? Zero-based budgeting forces managers to justify each dollar in the budget to ensure that some expenses are lower in a current year compared to what they were in previous years.

Detailed explanation-4: -Why do some people avoid writing or following budgets? Avoids headaches, bouncing a check, or the bank mistaking your account, or not knowing your actual balance.