Budget Analysis

Budget Analysis

In the budget analysis that Ted put together has some issues. Ted has only a net cash of $14,000, and an expense of $15,700. This budget seems to suggest that Ted is not having enough income for his expenses. The budget is a great tool for Ted. It gives him a preview of what items are important, making rent or going to the movies. It gives ted a chance to be responsible. I believe Ted has made a major problem in his budget analysis. I believe Ted has given a huge amount of his budget to the entertainment and the food expenses. He has $4,000 set aside for entertainment. He can cut this back to $2,600 for the entertainment. This frees up $1,400 extra cash. Also, Ted could cut back on his food budget. He could eat out less so he can save money. He needs to cut back on the items that he can control so he has some extra cash. So Ted has to cut back on some items in order to make payments for everything he needs to make a payment on. The expense accounts that he has listed are Tuition, books, rent, food, utilities, and entertainment. Some of these accounts are uncontrollable. This means that Ted has no influence on these accounts. Which means he cannot change those expenses. These accounts include Tuition, Books, Rent and some utilities. These accounts are set going to be necessities and the price cannot be changed. For the controllable expenses, meaning that Ted can control these assets in the budget, include Food, some Utilities, and Entertainment. I believe if Ted wants to cut back on these accounts in order to have enough money for fun and bills he should cut back on these accounts. Ted can go to the grocery store and purchase items to make at his apartment, instead of eating out. This should give him a couple hundred dollars extra so he can still have fun. Also, Ted can try to use less electricity so his electric bill is a little bit cheaper. Turning off all items not being uses, or simply turning a light off can cut back on the electric bill. When...