Discuss the Four External Factors That Prompt Change in an Organization

question 36

Essay

Discuss the four external factors that prompt change in an organization, giving an example of each factor. Explain how the factor affects the organization

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Definitions:

Selling and Administrative Expenses

Costs not directly tied to the production of goods or services, such as sales force and management salaries, advertising, and other administrative services.

Master Budget

An comprehensive financial plan that includes all of the smaller budgets within an organization, providing a complete picture of its financial activity and expectations.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs to a production process for manufacturing goods.

Finished Goods Inventory

Represents the value of products that are completed and ready for sale but have not yet been sold.