2 John's 5-year-old Geo Prizm requires repairs estimated at $2,900 to make it road worthy again. His friend Julie suggested that he buy a 5-year-old used Honda Civic instead for $3,000 cash. Julie estimated the following costs for the two cars Acquisition cost Repairs Annual operating costs (Gas, maintenance, insurance) What should John do? What are his savings in the first year? Options Include: A) Buy the Honda Civic, $15,080 B) Fix the Geo Prizm, $2,820 C) Buy the Honda Civic, $180 D) Fix the Geo Prizm, $5,280 E) Buy the Honda Civic; $80 Geo Prizm $15,000 $2,900 $2,280 Honda Civic $3,000 $2,100
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Subject : accounting
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