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Business: Budget
Budget
Question | Answer |
---|---|
Budget | Is a plan of our expected income and expected expenditure over a particular period |
Regular income | Income received every week/month e.g. pension, wages, social welfare payments |
Irregular income | income received now and again e.g. overtime, lotto win |
Benefit in kind | non-cash form of income e.g. company car, free flights for a pilot |
Fixed Expenditure | payments that do not change according to your use e.g. TV licence |
Irregular Expenditure | payments that do change according to use e.g. electricity bill |
Discretionary Expenditure | money spent after necessities have been bought |
Impulse buying | purchases made on the spur of the moment, without planning |
Opportunity cost | that good which you go without as a result of choosing another good |
How to reduce a budget deficit | -Increase income by working overtime - Decrease expenditure, particularly discretionary |
Net Cash | Planned Income - Planned Expenditure |
Closing Cash | Net cash + Opening cash |