Which factor primarily influences cost planning in this situation?

A company relies heavily on a seasonal raw material, and price fluctuations are a concern due to the dependence on the success of the crop.

Which factor primarily influences cost planning in this situation?
A . Rapid economic growth in China
B . Currency exchange rates
C . Seasonal demand
D . Speculation in core commodities

View Answer

Answer: C

Explanation:

Seasonal demand affects cost planning due to fluctuations in raw material availability and pricing based on seasonal cycles. [P-22]