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List and Describe Three Reasons Why a Company and Its

question 9

Essay

List and describe three reasons why a company and its managers could benefit from the use of budgeting.


Definitions:

Surplus

The amount of an asset or resource that exceeds the portion that is actively utilized.

Competitive Market

A market structure where many firms offer products or services that are similar, encouraging competition and efficiency.

Input Prices

The cost of resources used in the production of goods or services, including raw materials, labor, and overheads.

Technological Change

Refers to the improvement or innovation in technology, affecting how goods or services are produced or delivered.

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