What is meant by the term “critical success factor” (CSF) as used in the budgeting process?

Management Accounting Block Revision Mock Exams

Key factor also called the Critical Success Factor (CSF) or the Critical Constrain Factor (CCF) refers to the main factor that will have to be considered and incorporated into the budgets to ensure that the prepared budgets are reasonable and executable Key factor in most organizations is the demand for the units service produced: Once estimated, the budgets can be prepared from its estimated budget.

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