Quick Answer: What Are The Factors That Influence Planning And Budgeting?

What are the four factors that influence the choice of advertising used?

Factors Governing the Choice:The nature of product: …

Potential market: …

The type of distribution strategy: …

The advertising objectives: …

The type of selling message: …

The budget available: …

Competitive advertising: …

Media availability:More items….

What are the factors that affect budget planning?

Factors Affecting the BudgetIncome of the Family.Size of the Family.Composition of the Family.Occupation of the Family members.Intercity Differences.Family Goals.Socio-economic Status of the Family.Gainful Employment.

What are the six external environmental factors?

We can organize the external forces that affect business into the following six categories:Economic environment.Legal environment.Competitive environment.Technological environment.Social environment.Global environment.

What are internal and external factors?

What are external factors? The economy, politics, competitors, customers, and even the weather are all uncontrollable factors that can influence an organization’s performance. This is in comparison to internal factors such as staff, company culture, processes, and finances, which all seem within your grasp.

What are the 4 elements of the budgeting cycle?

A budget cycle is the life of a budget from creation or preparation, to evaluation. Most small businesses don’t use the term “budget cycle” but they use the process and go through each of its four phases — preparation, approval, execution and evaluation.

What are the internal factors that affect an organization?

Some examples of areas which are typically considered in internal factors are:Financial resources like funding, investment opportunities and sources of income.Physical resources like company’s location, equipment, and facilities.Human resources like employees, target audiences, and volunteers.More items…•

What are the steps in the budgeting process?

7 Steps to a Budget Made EasyStep 1: Set Realistic Goals.Step 2: Identify your Income and Expenses.Step 3: Separate Needs and Wants.Step 4: Design Your Budget.Step 5: Put Your Plan into Action.Step 6: Seasonal Expenses.Step 7: Look Ahead.

What are the factors affecting family budget?

Family expenditure depends upon the following factors:Availability of Money: … The size and the composition of the family: … Stages of family life cycle: … Occupation of the family members: … The needs and objectives of the family: … Resources: … Locality of the family: … Socio-economic status of the family:More items…

What internal and external factors might impact on the budget?

External factors negatively affecting assumed revenue might include an economic downturn, unexpected competition causing lowered sales or an inability to sustain the level of growth needed. Internal factors such as inadequate collections and poor accounts receivable practices could also impact revenue.

What factors influence planning?

EXTERNAL FACTORS THAT AFFECT PLANNINGExternal Surprises.Competitors.Legal/Ethical Factors.Economic/Political Issues.Technology.Social Trends.Forecasts of the Future.

What are the factors to consider when budgeting?

Here are 5 factors to think about as you prepare your budget:Your Income Structure. The way in which money comes into your income statement is critical for planning cash flow. … Your Spending Habits. … Your Use (or Not) of Credit & Debt. … Your Tech Savvy. … Your Personality.

What four factors will determine your promotional budget?

Here are the top four methods for setting an advertising budget used by the most successful independent businesses:Fixed percentage of sales. … Comparable to the competition. … Objective and task-based. … The maximum amount.

What are the factors affecting advertising?

Factors Affecting Advertising Campaign PlanningCampaign Objective. Every ad campaign has a primary goal or objective, and every decision you make should revolve around it. … Projected Annual Sales. … Competition. … Reputation. … Long and Short-Term Goals. … Frequency of Purchase. … New Product Introductions. … Geographic Differences.More items…•

What are the 5 basic elements of a budget?

Basics Elements of a Good BudgetIncome. The most basic element of all budgets is income. … Fixed expenses. Fixed expenses are those expenses over which you have little control or are unchangeable. … Flexible expenses. … Unplanned expenses and savings.

What are the factors that affect advertising budget and planning?

Frequency of the Advertisement. This means the number of times advertise has been shown with the description of the product or service, in the granted time slots. … Competition and Clutter. The companies may have many competitors for its product. … Market Share. … Product Life Cycle Stage.

What are the three parts of a family budget?

The Economic Policy Institute reports that family budgets for a modest standard of living have seven components: housing, food, child care, transportation, health care, other necessities such as clothing and entertainment, and taxes. The EPI notes that expenses rise as family size increases.

What is the importance of family budgeting?

A family budget is essential to managing your money. That’s because a family budget helps you: spend your money wisely on the things you must have – these are your needs. save money for the things you like but can live without – these are your wants.

What are the components of the budget?

Components of a budgetEstimated revenue. This is the money you expect your business to make from the sale of goods and services. … Fixed cost. When your business pays the same amount regularly for a particular expense, that is classified as a fixed cost. … Variable costs. … One-time expenses. … Cash flow. … Profit.