Which factor is NOT a concern when creating a production budget?

When creating a production budget, a crucial aspect is ensuring that the budget aligns with the anticipated demand for products, the resources available for production, and the technological capabilities that may influence production methods and costs.

The factor that is NOT a direct concern in this context is the competition's pricing strategy. While it's important for a business to be aware of competitors' prices, this information primarily informs strategic decisions regarding pricing, marketing, and positioning rather than directly influencing the internal mechanisms of budgeting for production itself.

The focus of a production budget is largely on internal variables like projected sales demand, which estimates how much product needs to be produced based on anticipated market orders. Additionally, the availability of resources is essential as it determines the feasible output level, while technological advancements may affect production efficiency and costs. However, competition's pricing strategy is more relevant to market strategy and sales forecasting than to the technicalities of creating a budget specifically aimed at production costs and processes.