21.1.1. Budget

Try these first

1. 1.

   What is a budget?

   Hint

   Think about what a roadmap does.

2. 2.

   What is the main purpose of budgeting?

   Hint

   It's like planning for a trip.

3. 3.

   What is a primary function of budgeting?

   • To track only expenditures
   • To plan for income and expenditures
   • To allocate departmental roles

   Hint

   Think about what budgeting helps organizations do.

4. 4.

   True or False: A flexible budget can adjust with activity levels.

   • True
   • False

   Hint

   Consider how budgets would react to changes.

5. 5.

   A tech startup has a projected revenue of $300,000 for the year and estimates its expenditure at$250,000. Discuss how effective budgeting will impact the startup's operations.

   Hint

   Consider both revenue management and expenditure control.

6. 6.

   In terms of budgeting, how could a company handle a sudden increase in operational costs while adhering to its fixed budget?

   Hint

   Think about cost-cutting measures or additional income strategies.