ECONOMICS
MONEY MANAGEMENT
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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: -Lower Expenses The main benefit of putting cost controls in place is lowering your company’s overall expenses. You can limit the amount of money different employee levels can spend, keeping more money from going out the door.
Detailed explanation-2: -Budget controls are necessary to ensure that a government does not spend more than the amount legally appropriated by its governing body. By establishing clear spending boundaries, budget controls also promote accountability and bolster trust throughout the organization.
Detailed explanation-3: -Budget is most widely known as a device for control. Control is exercised by comparing the actual cost or expenditure with the budgeted cost. Failure to meet expectations as shown by the budget, points immediately to the need for some corrective actions.
Detailed explanation-4: -A spending plan is a method for distributing your income among the mix of things you want and need. Creating a spending plan ahead of time will allow you to effectively manage your finances and determine where to best spend your money.