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PilotLPTM [1.2K]
3 years ago
12

What are the potential risks of having all three of these buckets (savings, investments and debt payments) belong in the same ca

tegory?
Business
1 answer:
Vlad [161]3 years ago
5 0

The potential risks that these three groups fall into the same category is that it is a low percentage and it is not a realistic proposition.

According to the theory of 50, 20, 30, a person's salary should be divided into 3 buckets that are:

  • 50% of salary must go towards mandatory expenses (housing rent payments, utilities, medical care, basic food, and transportation).
  • 20% of the salary must be used for savings and debt payments (programmed savings for old age or a special event, or the payment of debts such as card payments, bank loans, among others).
  • 30% of the salary must be allocated for non-priority expenses (it is the expenditure of money on experiences, objects, or others that are not essential for the individual).

This income distribution is unrealistic because most people spend more than 50% of their salary on compulsory expenses, reducing their economic capacity for other purposes.

In this way, the 20% destined to savings and payment of debts would be a minimum amount of the salary, which could have serious consequences such as:

  • Inability to pay debts
  • Inability to save for the future

Learn more in: brainly.com/question/12198015

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Summarise the following passage in on more than 60w words and supply an appropriate title:every second,1 hectare of the world's
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3 years ago
apone has the following estimates for the upcoming year: Activity Cost Pool Estimated Overhead Cost Estimated Activity Machine-r
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3 years ago
g Salmont Corporation uses the FIFO method in its process costing system. The company reported 28,000 equivalent units of produc
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Answer:

25,150 units

Explanation:

The question is to determine the number of production units that were started during the month.

Note that the company uses the First In First Out method for Process costing

<u>Description                          Units in Process</u>   <u>completion (%)</u>   Equivalent    

                                                                                                     <u>completed (units)                               </u>

The Equivalent Units             28,000                     100              28,000

Subtract:

Opening Work-in- progress    7,500                       60                 4,500

Closing Work in Progress       5,500                        70                3,850

Equivalent Units Started and Completed                                  19,650

Step 2: Equivalent Units Started

= Eqivalent Units started and completed +  Total Ending Units    

= 19,650 + 5,500 =     25,150 units

           

5 0
3 years ago
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