Question

Assume that you are asked to prepare a master budget for one of the products (name the product of Sony Company like PS4 OR smartphone or smart TV), what are the (internal/external) factors that you will be considering? Justify your response

Answer 1

Answer:

The internal factors which are should have been consider are :-

i) Fiscal resources are one of the main factors which majorly affected pretty much Every key decision in the business. So before setting up a master budget plan a budget maker need to see whether they have adequate resources or not.

ii) Technical expertise is another factor which influence the master budget plan of a corporate. As it is essential to know whether the organization utilizes capital intensive or work concentrated method of production.

iii) The Board skill in this it ought to be seen whether the administration of an organization is effective enough to take decision on schedule or not. Regardless of whether they can able to grab the opportunities accessible in the market.

External factors which influence the budget decision are:-

i) Market research as it is significant before making budget or producing merchandise that what are the requirements of the clients and simply after that decision identified with an item can be taken

ii) Accessibility of crude material is a major factor which may hamper the production framework and can influence the financial plan of a corporate. As a budget maker an individual should deal with the accessibility of crude material in the market.I.e, regardless of whether it is effectively accessible or not.

iii) Demand of item in the economy is sufficiently adequate to utilize resources or not.