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Business studies

What is fixed expenditure This is spending the same amount of money and on the same date with no changes
What is irregular expenditure This is spending money the date and the amount of money changes
What is discretionary expenditure and give an example This is spending money on things you don't need Eg holiday
What is an opportunity cost This is when you want to buy 2 things. You have to make a decision. The thing you don't buy is the opportunity cost
What is current expenditure This is when you spend money every week or month
What is capital expenditure This is when you spend money now and again
Why do we prepare a budget 1.To find out how much income and expenditure the family have 2. To make sure you don't spend more than you have ( avoid dept) 3.To find out if we can afford something
What is a budget defict This is when your income is smaller than your expenditure Income<expenditure
What is a surplus This is when your expenditure is smaller than your income Income>expenditure
Created by: Langan12