ABSTRACT
Technological and market influences have an important impact on how budget systems function. Explanations of differences in budget relevance level between plants can be found in three areas:
Differences in the product cost structure between plants, leading to a difference in plant management’s possible contribution to profits.
The difference between a dynamic and a static product cost which is immediately related to the type of product and the technology of its manufacture.
Differences in the managerial climate which is dominated by the specific interests of the people in top management, who in their turn are influenced by their market.
These external explanations of what was found in this study serve to complete the picture of influences upon budget systems in an interdisciplinary way.
