Photo AI

This is a Household Budget Question - Junior Cycle Business Studies - Question 1 - 2015

Question icon

Question 1

This-is-a-Household-Budget-Question-Junior Cycle Business Studies-Question 1-2015.png

This is a Household Budget Question. Answer all parts of this question: (A) On page 9 of Section A is a partially completed summary of the Dwyer household budget f... show full transcript

Worked Solution & Example Answer:This is a Household Budget Question - Junior Cycle Business Studies - Question 1 - 2015

Step 1

What is a budget?

96%

114 rated

Answer

A budget is defined as a forecast or plan on future income and expenditure for a specific time period. It serves as a guide for managing financial resources effectively.

Step 2

Outline two reasons for preparing a budget.

99%

104 rated

Answer

  1. To estimate if there will be a surplus and what can be done with it, or the method to eliminate it.
  2. To assess the viability of future expenses and ensure that the household remains within its financial means.

Step 3

Name any month the Dwyer household plan to have a deficit and the amount of the deficit.

96%

101 rated

Answer

The Dwyer household plans to have a deficit in:

  • Month: August
  • Amount: €210

Step 4

Suggest one way of overcoming this deficit.

98%

120 rated

Answer

One way to overcome the deficit is by reducing the amount they intend to save or cutting back on discretionary expenses.

Step 5

Did the Dwyer household plan to live within its income for the period July to October 2015? Give one reason for your answer.

97%

117 rated

Answer

Yes, the Dwyer household planned to live within its income since they are saving €1,800 which could be utilized to cover any shortfall.

Step 6

Show, by ticking (✓) the correct box, whether the following expenses would be classified as Fixed, Irregular or Discretionary in its household budget:

97%

121 rated

Answer

Car Expense Classification:

  • NCT Fee: Fixed ✓
  • Diesel: Irregular ✓
  • New Alloy Wheels: Discretionary ✓
  • Car Service: Discretionary ✓

Step 7

Complete the Cheque and Counterfoil.

96%

114 rated

Answer

Cheque: Date: 16/06/2015
To: Dingle Insurance Ltd
Amount: €545.00
Signature: Sinead Dwyer

Counterfoil: Date: 16/06/2015
Amount: €545.00
Balance: €409.00

Join the Junior Cycle students using SimpleStudy...

97% of Students

Report Improved Results

98% of Students

Recommend to friends

100,000+

Students Supported

1 Million+

Questions answered

;