When the cost of carrying out business activities and production increases.

[TOZZIBLINKZ]

Poor economic and political instability could make the cost of carrying out business activities , dealings , and doings to become high making it cumbersome , burdensome , and unbearable , for business owners and commercial Enterprises owners not to be able to continue the act of goods and services production so as to satisfy the numerous human wants and needs . When the cost of production increases in a particular business organisation , this only calls for the time of budgeting and carefully resource allocation . As the business employer or the business manager in such business organisation whose cost of production has increased in the local market , you must be sure or endeavour to make sure to be able to allocate available business resources to only among sectors that are considered to yield output that are consider to be pressing and most wanted needs and wants of members of the public .

For example a company or a commercial Enterprise that produces soft drinks of different prices . And so in a case where the cost of production of soft drinks increases , such business organisations must be able to pick a particular soft drink that is most liked and preferable by members of the public and continue the production of it for the meantime , until possibly , when the cost of production of other soft drinks decreases .