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What budgeting option is best used only with limited resources and expenses?

a.Mental budgeting
b.Physical budgeting
c.Written budgeting
d.Software budgeting

User Bien
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1 Answer

4 votes

Answer:

a.Mental budgeting

Step-by-step explanation:

Mental budgeting refers to the use of one's cognitive abilities to plan for incomes and track down expenditure. It involves the mental separation of economic categories of income and expenses. A household practicing mental budgeting does not make written plans for its expected revenues or how its income will be spent.

Mental budgeting is applicable where income is low, or the amount being budgeted for is little. The figures involved can be memorized easily, and the budget lines are few.

When the budget amount is huge, mental budgeting can lead to over or under consumption. Confusion is likely to occur, such that a that a firm or individual may borrow and save simultaneously.

User Santoshpatmca
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