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1.What is the core characteristic that defines a zero-based budget?

2.Bianca has take-home pay every month of $800. She anticipates having $675 of expenses in August.

3.In a zero-based budget, why is it important that she put the extra $125 in some budget category?

4.Where might you suggest Bianca budget that extra $125? Why?

5.Does using a zero-based budget mean that your bank account will hit $0 at the end of every month? Explain.





Say that Bianca has take-home pay of $800, she budgets every cent out at the start of the month, and she then she needs less gas money than expected in August. She no longer spends the full $65 she budgeted there. What should she do with the leftover?

Respuesta :

Answer:

1. You account for every dollar you make to where your budget shows you have $0

2. She will have $125 leftover to budget out as she sees fit

3. If she does not account for it she may over spend or think she has extra money

4. I would put it in savings

5. No this is not what it means. This means that your paycheck will be able to cover your expenses.

6. You should put extra money in savings. You never know what will occur and savings can always help.

Step-by-step explanation:

Blanca has a savings of $125, she needs to allocate this amount to fulfill the zero-based budget conditions, as a saving she can allocate the remaining amount.

What is the zero-based budget?

It is defined as the budgeting method that allows you to fix an amount for everything such as utility expenses, savings, and miscellaneous expenses In other words income minus all expenses plus savings should be equal to zero.

1) The core characteristic of the zero-based budget as follows:

  • Strategy is dependent on what each unit can provide for the price.
  • Quick changes can be made in the budget anytime if it is required to do so.
  • All the people of the organization can participate in the budgeting process.
  • The purposes of each unit are in line with the corporate aspirations.

2) Blanca has take-home pay every month = $800

Total expenses = $675

Savings = Income - Total expenses

= $800 - $675 ⇒ $125

We can assume Blanca has savings of $125 at the end of the month.

3) The extra amount = $800 - $675 ⇒ $125

According to a zero-based budget income minus all expenses plus savings should be equal to zero.

Therefore Blanca needs to allocate this amount($125) to some budget category.

4) Blanca has a total of $675 expenses she will have $125 as saving at the end of the month.

She should allocate this amount to savings because it will increase her wealth.

5) Zero-based budget does not mean that at the end of every month Blanca has zero dollars in her bank account because as per the definition zero-based budgeting means income minus expenses should be equal to zero. Blanca has savings and other emergencies funds in her bank account.

Thus, Blanca has a savings of $125, she needs to allocate this amount to fulfill the zero-based budget conditions, as a saving she can allocate the remaining amount.

Learn more about the zero-based budget here:

https://brainly.com/question/15994567

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