Cost of production increased because of sudden increase in transportation cost, which resulted in lesser profits.

Which limitation of planning is highlighted in the aforesaid statement ?

Planning may not work in a dynamic

The correct answer is option (1) : Planning may not work in a dynamic

The limitation of planning highlighted in the given statement is:

1. Planning may not work in a dynamic environment

The sudden increase in transportation costs, leading to a decrease in profits, indicates that the business environment is dynamic and can change unexpectedly. In such dynamic conditions, plans may become less effective as they might not adapt quickly enough to changes in the external environment.