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Mr. Goyal has a budget of Rs.1,00,000 which he plans to spend on sweets and crackers on Diwali. He actually spent Rs.1,25,000 because of more expenditure on crackers. How will you show his planned expenditure and actual expenditure through budget line? Is this over expenditure justified ?

Answer» <html><body><p><br/></p>Solution :His planned and actual expenditure can be <a href="https://interviewquestions.tuteehub.com/tag/shown-1206565" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWN">SHOWN</a> through the <a href="https://interviewquestions.tuteehub.com/tag/budget-25496" style="font-weight:bold;" target="_blank" title="Click to know more about BUDGET">BUDGET</a> line as given in adjacent figure.<br/> The budget line rotates <a href="https://interviewquestions.tuteehub.com/tag/rightwards-1189403" style="font-weight:bold;" target="_blank" title="Click to know more about RIGHTWARDS">RIGHTWARDS</a> due to over expenditure on crackers which implies more quantity bought of crackers. Over expenditure is not justified as it is a wasteful expenditure. Also crackers <a href="https://interviewquestions.tuteehub.com/tag/cause-910965" style="font-weight:bold;" target="_blank" title="Click to know more about CAUSE">CAUSE</a> <a href="https://interviewquestions.tuteehub.com/tag/air-852233" style="font-weight:bold;" target="_blank" title="Click to know more about AIR">AIR</a> pollution and noise pollution and harm the environment. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U02_C02_E01_049_S01.png" width="80%"/></body></html>


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