How are budgets created and used? What success have you had with creating and using a...

How are budgets created and used? What success have you had with creating and using a personal budget?

Solutions

Expert Solution

Budget is created keeping in mind the next month/quarter/Year spending on different items.

Budget can be of different types:

1. Personal

2. Firm's Budget

While in personal budget you take into account different type of personal spending, in a firm's budget, all the item head pertaining to firm's expenses will be considered.

Possible expense head in Personal budget and possible values:

S.No.	Head	Monthly Budget
1.	Rent	$800
2.	Food	$ 500
3.	Personal Hygiene	$100
4.	Cloths and other Shopping	$400
5.	Medicine	$ 100
6.	Local Conveyance	$100
7.	Entertainment	$200
	Total	$2200

Here you can see different heads have been assigned different values. These values are decided on the basis of past expense and future projection.

The budget is used to check the spending and overshoot if any and keep in check the overall spending.

As shown in the table, I regularly create monthly budget and follow it to keep expense in check. I found it very useful and was very successful in making and using.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

What experiences have you had building or trying to stick to budgets in your organization. What...

What experiences have you had building or trying to stick to budgets in your organization. What issues and challenges have you seen? I work in a school. What kind of challenges can be faced with building or trying to stick to budgets?

As a manager, discuss how you would use or have used the concept of (flexible budgets...

As a manager, discuss how you would use or have used the concept of (flexible budgets and performance analysis) and (standard costs and variances) Why might managers find a flexible-budget analysis more informative than static-budget analysis? How might a manager gain insight into the causes of flexible-budget variances for direct materials, labor, and overhead? Provide at least one numerical example to support your thoughts.

Define budgeting and control. How are budgets used in planning? How are budgets used to control?...

Define budgeting and control. How are budgets used in planning? How are budgets used to control? What are some of the reasons for budgeting?

What is a sampling distribution of means? How is it created and what is it used...

What is a sampling distribution of means? How is it created and what is it used for?

Name a type of document that can be created with Microsoft Word. Using what you have...

Name a type of document that can be created with Microsoft Word. Using what you have learned from practice, describe the functions of Microsoft Word that aid you in creating the document you named. Describe how you would use the Word functions for creating your document.

What is an antibiogram? How is it created and used to prevent the growth of multidrug...

What is an antibiogram? How is it created and used to prevent the growth of multidrug resistant organisms?

what resources are used when LWP is created and how do they differ when HWP is created?

A9-75 in this activity, you will be creating budgets for a single product for each of...

A9-75 in this activity, you will be creating budgets for a single product for each of the months in an upcoming quarter. Select a product that you could purchase in large quantities (at a Sam's Club or other warehouse retail chain) and repackage into smaller quantities to offer for sale at a sidealk cafe, a sporting event, a flea market, or other similar venue. Investigate the price a quantity at which this product is available at the warehouse. Choose a...

Write about what college success means to you. How will you define success,and what strategies will...

Write about what college success means to you. How will you define success,and what strategies will you use to achieve success? Please write 300 words. Please cite in text research paper author and year.

How are budgets used for a company or in government? What would your suggestions be to...

How are budgets used for a company or in government? What would your suggestions be to balance our economic budget? After identifying suggestions for balancing the economic budget explain the importance of being able to identify various "variances" that may be identified? You may use any examples you want.

Subjects