For each of the following scenarios, indicate whether the individual made a correct choice or an incorrect choice when preparing a budget. Correct Incorrect Choice Choice David is a sales rep who, based on last year, averaged $2,500 of monthly commission before taxes. He should include this in his budget. Sharon was just notified that her contribution to the company's health plan is increasing by 3.5%. It's a company expense, so Sharon doesn't include it in her budget. As Scott was reconciling his checkbook, he realized that he incurred $15.75 last month for ATM withdrawals. He looked back at the last six months and realized that he averaged the same amount each month. This is an unexpected expense and shouldn't be listed in his budget. Every year the Mendozas buy a big item or take a trip with a single annual bonus Jesse receives. They included this in their budget.
For each of the following scenarios, indicate whether the individual made a correct choice or an incorrect choice when preparing a budget. Correct Incorrect Choice Choice David is a sales rep who, based on last year, averaged $2,500 of monthly commission before taxes. He should include this in his budget. Sharon was just notified that her contribution to the company's health plan is increasing by 3.5%. It's a company expense, so Sharon doesn't include it in her budget. As Scott was reconciling his checkbook, he realized that he incurred $15.75 last month for ATM withdrawals. He looked back at the last six months and realized that he averaged the same amount each month. This is an unexpected expense and shouldn't be listed in his budget. Every year the Mendozas buy a big item or take a trip with a single annual bonus Jesse receives. They included this in their budget.
Chapter3: Financial Statements, Tools, And Budgets
Section: Chapter Questions
Problem 3FPC
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