Question

question 1
you set a goal to spend less money over the course of a year.
which measurement strategy will best help you track and achieve your goal?

• compare your bank account balance at the end of the year to the balance from the beginning of the year.
• compare the number of things you buy each month with the number you bought in the prior month.
• use an app to track your monthly cash flow. compare each months outflow to the prior months outflow.
• keep track of everything you spend money on in a spreadsheet. at the end of the year, organize the items by cost.

Explanation:

To track and achieve the goal of spending less money over a year, we need a strategy that monitors spending over time and allows for comparison to identify trends.

• Option 1: Comparing year - end and year - start balances doesn't show monthly spending patterns or where savings can be made.
• Option 2: Comparing the number of items bought doesn't relate to the cost (since different items have different prices), so it doesn't help with spending less.
• Option 3: Using an app to track monthly cash flow and comparing each month's outflow to the prior month's outflow helps in identifying if spending is decreasing over time. It provides regular feedback (monthly) to adjust spending habits, which is crucial for achieving the annual goal.
• Option 4: Organizing spending by cost at the end of the year doesn't help in tracking progress during the year, so it's not useful for achieving the goal as it lacks timely feedback.

Answer:

C. Use an app to track your monthly cash flow. Compare each month's outflow to the prior month's outflow.