Purchase Solution

Budgeting for individual & company-importance

Not what you're looking for?

Ask Custom Question

Go to the website of Practical Money Skills for Life at http://www.practicalmoneyskills.com. Click on at Home, and then click on Budgeting. Click on the Budget Calculator and create a personal budget, using fictitious numbers if you wish. You may also use any of the other tools that are available at this site. Change one or more of the income and expense numbers in your budget and determine the impact of the change(s).

What surprised you, if anything, in the budget(s) that you prepared? What changes, if any, would you make in the personal activities that are under your control, based on the budget(s) that you prepared? Do you think it is more important for a business to have a budget than it is for an individual to have a budget? Why or why not?

Purchase this Solution
Solution Summary

The answer contains the importance of budgeting for individuals and company.

Solution Preview

The budget calculator in the website http://www.practicalmoneyskills.com shows the various types of income received by an individual and the various expenses in a particular month. Income includes the income of the individual, his spouse, interest income to be received by the individual and any other income to be received by the individual definitely. Likewise, an individual will incur various expenses viz., rent, food, children education, insurance, utilities like electricity, credit card payment due in the month, ...

Purchase this Solution
Free BrainMass Quizzes
Lean your Process

This quiz will help you understand the basic concepts of Lean.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Accounting: Relevance Of Budgeting

    Budgeting is one of the central elements of business, whether we're dealing with the accounting firm we work for, or a client company.

  • Financial Risk of Capital Budgeting Decisions

    For example, a company may suffer from such loss in the case of expropriation or tightened foreign exchange repatriation rules, or from increased credit risk if the government changes policies to make it difficult for the company to pay creditors.

  • I need some assistance analyzing "Capital Budgeting"!

    The importance of this type of funding as it relates to capital budgeting is to help the company find external sources of funding that will have the lowest cost of capital.

  • Budgets to Ensure Profits

    412665 Importance of budget to ensure a profit; primary use of budgets; drawbacks of budgets 1. Without a budget, how do you think this company can ensure they turn a profit? 2.

  • Finance and importance to business

    Here the company use CAPM to calculate the cost of equity that further helps in the capital structure of the company as well as capital budgeting. Stocks are the mode of financing for a company.

  • Public Budgeting and Accounting

    College and university officials will be held accountable for any misappropriations that are discovered from these audits. The expert examines public budgeting and accounting.

  • Importance of Business Budgeting

    414880 Importance of Business Budgeting Why is business budgeting important? Describe how you use budgeting in your personal life or in your company. Budgeting serves two purposes.

  • Capital Budgeting

    The solution discusses the importance of capital budgeting and recommends a technique.

  • Importance of financial planning, budgeting as a tool

    The importance of financial planning as a management tool cannot be underestimated. Without a plan, it's hard to know where a business (or an individual, for that matter) is going and how it will get there.

View More Related Solutions