Final answer:
The category in Levi's budget most likely to cause a difference between planned and actual expenses is groceries. While rent and taxes are more predictable, grocery spending can fluctuate, leading to a potential mismatch in expected and actual costs. The correct answer is option d.
Step-by-step explanation:
When examining the elements of Levi's budget, the category most likely to cause a discrepancy between projected and actual expenses is typically groceries. Fixed costs such as rent and taxes are generally predictable and constant monthly amounts. In contrast, spending on groceries can vary significantly, as it can be influenced by many factors including dietary changes, unexpected sales, food waste, or impulsive buying.
Income, while an important part of the budgeting process, is a factor of earnings rather than an expense category. Therefore, it is less likely to be the source of discrepancy in Levi's expenses unless there was an unexpected change in income. Financial planning involves both revenue (typically seen as taxes or other forms of income) and expense (such as spending) to maintain a balanced budget. Governments also encounter such issues where policy decisions and unforeseen events can impact the planned annual budget deficit or surplus. Similarly, individuals like Levi must adapt their spending habits to reflect real-life situations that affect their personal budgets.