Need help with filling the VFS Germany schengen visa application form

I'll be doing a Eurotrip covering Budapest, Vienna, Prague, Berlin and Amsterdam. I am applying through the German Embassy from India, and I am getting stuck while filling up this visa application form.

(A) They have a separate 'Reference' section, which asks for type of reference. The options are

1. Inviting person/organisation
2. Hotel
3. Accredited Diplomat
4. EU citizen
5. Householder
6. No reference person

Should I be selecting Hotel as the option? (I will be staying in hostels in all cities).

When I select the 'Hotel' option, I have to fill more entries, as you can see here. After that, do I need to write anything about the hotel's place of country, areas of activity, name of register of the org, location of reg, reg number, etc.? Or is that applicable only to companies/organizations and not to hotels?

(B) Also, details of which ho(s)tels do I have to provide, given that I will end up in multiple places? My place of entry into Schengen is Hungary, so I'm, confused whether I should enter details of the hostel I will stay in Hungary or the one in Germany.

(C) In the section about means of support, I've to tick whichever of the following options apply:
1. Cash
2. Traveller's cheques
3. Credit Card
4. Accommodation paid in advance
5. Assumptions of all expenses during the stay
6. Transport paid in advance

What do they mean by the 5th option? Also, for the schengen visa, I am assuming that I dont need to book my intercity transport as of now. I intend to book it later while I am in Europe. I will provide the name of the travel company, time and dates of my planned bookings in the application. Would that be okay or they would want me to provide intercity travel bookings too?