List Some External Factors That Need to Be Considered by a Budget

question 65

Essay

List some external factors that need to be considered by a budget unit in preparing an initial budget proposal.

---

Definitions:

Total Costs

The sum of all expenses a firm incurs in producing a product or offering a service, including both fixed and variable costs.

Total Variable Costs

The sum of all costs that vary with output level, including materials, labor, and other expenses that change with production volume.

Techniques of Production

The methods and processes used by firms to produce goods and services efficiently.

Price of Output

The amount of money that a firm receives from the sale of goods and services it produces.