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When budgeting, it's generally better to use net pay rather than gross pay, as net pay reflects the actual amount you take home after taxes and deductions. Using net pay ensures that your budget aligns with your real financial situation, allowing for more accurate planning of expenses and savings. Gross pay can provide a misleading picture, as it doesn't account for mandatory withholdings and other deductions that impact your disposable income. Therefore, focusing on net pay helps you create a more realistic and effective budget.
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Which capital budgeting method uses accrual accounting rather than net cash flowsl as a basis for calculations?
apr
What are the disadvantages of Activity Based Budgeting?
Time consuming to set up - have to understand the activities that drives the budgetCostly - buying, implementing and maintaining an activity based systemManagers may be overwhelmed with information - may be demotivating, rather than looking at the bigger pictureMore effective methods such as, zero based budgeting and continuous budgeting
What is another name for zero based budgeting?
Another name for zero-based budgeting is "zero-based budgeting approach" or simply "zero-based budgeting method." This budgeting strategy requires that all expenses be justified for each new period, starting from a "zero base," rather than basing budgets on previous periods' expenditures. It emphasizes the necessity to allocate resources efficiently by evaluating each expense based on its merits.
Should concept of performance budgeting as differentiated from budgeting by?
Performance budgeting focuses on linking funding to measurable outcomes and results, rather than just inputs or expenditures. This approach helps ensure that resources are allocated efficiently and effectively, promoting accountability and transparency in government spending. By emphasizing the performance of programs, it encourages agencies to prioritize activities that yield the greatest public benefit. Overall, performance budgeting fosters a results-oriented mindset in public finance management.
What is the difference between potential gross income and effective gross income?
One is better than the other.
When creating a budget, should it be based on your gross pay or net pay?
When creating a budget, it is generally recommended to base it on your net pay rather than your gross pay. Net pay is the amount you actually take home after deductions, such as taxes and other withholdings, which gives a more accurate picture of your available funds for budgeting purposes.
When creating a budget, should you use gross pay or net pay?
When creating a budget, it is generally recommended to use your net pay rather than your gross pay. Net pay is the amount of money you actually take home after taxes and deductions, so it provides a more accurate picture of your available funds for budgeting purposes.
When creating a budget, should you use net pay or gross pay?
When creating a budget, it is generally recommended to use your net pay rather than your gross pay. Net pay is the amount of money you actually take home after taxes and deductions, so it gives you a more accurate picture of your available funds for budgeting purposes.
How is result based budgeting applicable in Zimbabwe?
With results based budgeting in Zimbabwe, funds are allocated based on defined progressive steps. Rather than have funds available not tracked to measurable results, results based budgeting provides incentive to perform.
Which capital budgeting method uses accrual accounting rather than net cash flowsl as a basis for calculations?
apr
What are the merits of budgets?
Budgeting allows management to take a longer view of the company rather than focus solely on day to day activities. The benefits for budgeting are as follows: profitability review, performance evaluations, funding planning, and assumptions review.
What are the disadvantages of Activity Based Budgeting?
Time consuming to set up - have to understand the activities that drives the budgetCostly - buying, implementing and maintaining an activity based systemManagers may be overwhelmed with information - may be demotivating, rather than looking at the bigger pictureMore effective methods such as, zero based budgeting and continuous budgeting
When creating a budget, should you use gross pay or net pay Why?
When creating a budget, it is generally recommended to use net pay rather than gross pay. Net pay is the amount of money you actually take home after taxes and deductions, so it gives a more accurate picture of your available funds for budgeting purposes. Using net pay helps you plan your expenses more realistically and avoid overspending.
What is another name for zero based budgeting?
Another name for zero-based budgeting is "zero-based budgeting approach" or simply "zero-based budgeting method." This budgeting strategy requires that all expenses be justified for each new period, starting from a "zero base," rather than basing budgets on previous periods' expenditures. It emphasizes the necessity to allocate resources efficiently by evaluating each expense based on its merits.
Why does capital budgeting rely on analysis of cash flows rather than on net income?
Cash flow rather than net income is used in capital budgeting analysis because the primary concern is with the amount of actual dollars generated. For example, depreciation is subtracted out in arriving at net income, but this non-cash deduction should be added back in to determine cash flow or actual dollars generated.
Is Budgeting a project is often more difficult than budgeting routine activities?
matter of opinion
When creating a budget, should you use gross pay or net pay and why?
When creating a budget, it is generally recommended to use net pay rather than gross pay. Net pay is the amount of money you actually take home after taxes and deductions have been taken out. Using net pay gives you a more accurate picture of your available funds for budgeting purposes, as it reflects the money you have available to spend and save after accounting for all necessary expenses.
