Answered step by step
Verified Expert Solution
Question
1 Approved Answer
did i answer the question correctly: It is important to remember that there are 2 sides to the budget. There is revenue and there are
did i answer the question correctly: It is important to remember that there are 2 sides to the budget. There is revenue and there are expenses. What happens when you misjudge the revenue portion? I think it's crucial to consider both revenue and expenses. Overestimating income can lead to problems like fund shortages, cutbacks, borrowing, and can affect future plans and trust. If income is overestimated, there may be less money than planned, leading to a fund shortage. This could require cost-cutting or borrowing, which could reduce spending on areas like marketing or staff or result in debt. This can also impact future planning, making us more cautious or creating a cycle of shortages. Consistent overestimation can lead to loss of trust from stakeholders, who may question your management skills. A balanced budget, considering both income and costs, ensures financial stability and growth
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started