Answer (A) is correct . A large manufacturing firm will be well familiar with the seasonal patterns to which demand for its products is subject. The forecast is being prepared for an entire year, so the cyclical effects of varying demand will be taken into account.
Answer (B) is incorrect because Interest rates and unemployment levels will have a direct impact on a manufacturer’s operating and financing budgets.
Answer (C) is incorrect because If shortages of key raw materials are expected, this will have a major impact on a manufacturer’s budgeting process.
Answer (D) is incorrect because Input from all levels of the organization is important to a successful budget.
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