Which of the following factors can lead to unforeseen costs?

Selecting environmentally-related liabilities as the answer highlights the complex interplay between business operations and environmental regulations. Companies today face increasing scrutiny regarding their impact on the environment, which can result in unforeseen costs. For example, a business might incur unexpected expenses due to the need for compliance with new environmental laws, fines for past violations, or costs related to clean-up operations after environmental damage.

Additionally, businesses may have to invest in technologies or materials that minimize their environmental footprint, which can also lead to unplanned costs. These liabilities can arise suddenly due to changes in regulations or public perception, making them particularly challenging to anticipate during planning phases, unlike factors that typically have a more predictable financial impact.

In contrast, while increased customer demand and upscaling production capacity can also lead to heightened expenses, they are generally more manageable and can be planned for effectively through forecasting. Effective budgeting, on the other hand, is meant to minimize unexpected costs by projecting revenue and expenses accurately.