Thus any budget must be altered constantly to incorporate new events so that as the future becomes the present, there are no major surprises for the firm's investors. The asking price is often the determining factor in deciding what to produce and how to allocate the returns from this production between reinvesting, principal payments and the owners' salaries. Even though prediction is difficult, it has to be done. Without predicting asking price, the whole concept of firm production is guesswork and hope. Every firm makes most, if not all, of its decisions from asking price.
Winners stay, losers leave.
This paper has shown that the asking price of a marketable product is more than the costs of producing it. The firm can only make money if it covers all its costs. If there were no debt the increase would be smaller. If the firm had a less aggressive re-investment program, the increase would be less. The point really is not the percentage magnitude of the charges, but the fact that they must be included in budget calculations for the firm and its owners to survive and prosper.