GENERAL KNOWLEDGE

Detailed explanation-1: -Budget management skills are the abilities and knowledge you use when planning and regulating spending at a business. You can apply these skills in a range of contexts, such as supervising the financial situation of entire businesses to coordinating the spending of a small short-term project.

Detailed explanation-2: -The correct answer is option D. Preventing net operating losses is not a part of budgeting.

Detailed explanation-3: -The ability of an individual to adopt a proactive approach towards managing his own or his company’s money is known as his budgeting skills. Budgeting skills involve conscious decision making about allocation of money such that expenditures do not exceed the income.

Detailed explanation-4: -There are four common types of budgets that companies use: (1) incremental, (2) activity-based, (3) value proposition, and (4) zero-based. These four budgeting methods each have their own advantages and disadvantages, which will be discussed in more detail in this guide. Source: CFI’s Budgeting & Forecasting Course.