A budget coefficient is a numerical representation of the proportion or percentage of a company’s budget allocated to a specific expense or category. It is a key factor in financial planning and decision-making, as it helps determine the level of resources that can be allocated to different areas of a business. A high budget coefficient for a particular expense indicates that it is a significant priority for the company, while a low coefficient suggests that it is a lower priority. By analyzing budget coefficients, companies can effectively manage their finances and ensure that resources are allocated in a strategic and efficient manner.