When Estimating Expenses for a Budget

question 26

Multiple Choice

When estimating expenses for a budget,

• A) last month's and last year's expenses are not a good starting point.
• B) many of the same expenses do not occur each month.
• C) large unusual expenses such as car or hospital bills should be included.
• D) estimating your future assets is a good starting point.

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Definitions:

Total Profits

The overall financial gain made by a business, calculated as the total revenue minus total expenses.

Utility Function

A representation or model that quantifies an individual's preferences for various outcomes or bundles of goods and services, used in economics to analyze behavior.

Auto Repairs

Services aimed at diagnosing and fixing problems related to a vehicle's performance or condition.

Gasoline

A flammable liquid derived from petroleum, used mainly as fuel in internal combustion engines.