What is a good way to determine the accuracy of your budget?

Question

Quizplus · Accepted Answer

The best way to determine the accuracy of your budget is to compare your actual inflows and outflows for a recent period to your forecast. This will allow you to see where you were accurate in your estimates and where you may have underestimated or overestimated. From there, you can adjust your budget accordingly for future periods. Option A may be helpful in the initial budgeting process, but it does not account for changes that may occur. Options B and D both suggest being more cautious and adjusting estimates, but without any specific data or comparison to actuals, these adjustments may not be accurate.

What Is a Good Way to Determine the Accuracy of Your