Question

After the budget is created, it is important to:

a. File the budget in a safe deposit box
b. Compare it to the previous budget
c. Track spending and identify variances
d. Only pay attention to expenses that are more than 10 percent of your salary
e. None of the above are true since budgets are just estimates

Answer 1

After creating a budget, tracking spending and identifying variances is crucial to stay on track with financial goals and make necessary adjustments.

Step-by-step explanation:

After the budget is created, it is important to c. track spending and identify variances. This involves monitoring actual income and expenditures against the planned figures in the budget to ensure that you are on track with your financial goals. Tracking variances can alert you to areas where you are overspending or not meeting your income targets, allowing for timely adjustments to be made.

Comparing your current budget to the previous one can also be insightful, but the key activity is to stay updated with your current financial situation and make informed decisions based on that information.