Final answer:
It represents the calculated difference between the Total Budgeted Expenses and Total Actual Expenses, indicating either savings or over-expenditure. This amount signifies the financial variance for the month. Thus The correct option is (c).
Step-by-step explanation:
The Total Budgeted Expenses represent the planned expenses based on the family's combined wages and budgeting for the month. The Total Actual Expenses, on the other hand, reflect the real expenditures incurred. To calculate the difference, subtract the Total Actual Expenses from the Total Budgeted Expenses.
In this case:
Total Budgeted Expenses - Total Actual Expenses = $325.00
Therefore, the correct answer is $325.00.
The family either spent $325.00 less than planned, or they managed to save this amount.
This could be attributed to disciplined spending or unexpected cost savings during the month. Understanding the variation between budgeted and actual expenses is crucial for effective financial management, allowing the family to make informed decisions and adjustments for future months.
It's important for families to regularly review their budget performance, identify patterns, and make necessary adjustments to achieve their financial goals. This process promotes financial stability and helps in making informed decisions regarding savings, investments, and lifestyle choices.