3rd quiz business grade 11 ( budget+ operation)

Budget have several functions, except:

• Stating goals in terms of unmeasurable performance criteria

• acting as an internal communication device that links the various organizational dept or division

• reflecting management's priorities in allocation of organizational resources

• serving as control devices that allow management to determine appropriate corrective action

• attempt to influence and motivate managers

It's important to spend money on things you need before spending money on things you want.

• True
• False

Which of the following is an example budgeting method that used by Japan people

• incremental

• Kakeibo

• envelope method (50, 30,20%)

• Zero budgeting

The graph above represents a family’s monthly budget. The family’s income is $3,125. How much money does the family spend on utilities, transportation costs, and savings?

• $1000.93

• $1093.75

• $1937.50

• $2037.50

An item that is bought without budget planning or wise consideration of long-term effects

• impulsive buy

• planned shopping

• sale item

• clearance sale

The item you gave up to purchase the item you chose.

• expensive

• unecessary

• cheap

• opportunity cost

What two things does a budget compare?

• Income and Expenses
• Savings and Interest
• Income and Investments
• Expenses and Expenditures

When you set a budget, you should never revisit or adjust it.

• True
• False

What does it mean to pay yourself first?

• pay your bills first
• buy what you want first
• put your money in savings and investment first

• pay your taxes first

Which of the following statements about budgets is correct?

• Budgets are forecast

• Budgets are part of the published accounts of a business

• Budgets aid planning

• Budgets solve liquidity problems