Budget

Why is it important to keep a budget?

• Budgets make sure you do not spend more money than you can afford.

• Budgets can help you save for large purchases.

• Budgets show you how much money you get and spend.

• All of the above.

The goal of a budget is to SPEND less than you EARN.

• True

• False

What are Costs

• Money received from the sale of the product or service

• money left over after all the expenses are paid

• the amount spent to make a product

• money received from the sale of the product or service

What is Revenue?

• The amount spent to make a product

• Money received from the sale of the product or service

• Money left over after all the expenses are paid

• The cost of raw materials used in production

What is Profit?

• Money received from the sale of the product or service

• The cost of raw materials used in production

• Money left over after all the expenses are paid

• The amount spent to make a product

What is the meaning of Expenses?

• Money left over after all the expenses are paid

• The amount spent to make a product

• Money received from the sale of the product or service

• The cost of raw materials used in production

What is the definition of Operating Expenses?

• Money received from the sale of the product or service

• The cost of raw materials used in production

• The costs associated with the day-to-day operations of a business

• Money left over after all the expenses are paid

What is the meaning of Cost of Goods Sold (COGS)?

• The direct costs attributable to the production of the goods sold in a company

• Money left over after all the expenses are paid

• Money received from the sale of the product or service

• The costs associated with the day-to-day operations of a business

What is the definition of Direct Costs?

• The costs that can be directly attributed to the production of a product

• Money received from the sale of the product or service

• Money left over after all the expenses are paid

• The cost of raw materials used in production

What is the definition of Indirect Costs?

• The costs that cannot be directly attributed to the production of a product but are necessary for operations

• Money received from the sale of the product or service

• Money left over after all the expenses are paid

• The cost of raw materials used in production