When administered wisely, budgets promote communication and coordination among the various subunits of the organization.

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Budgets provide a clear framework for setting goals and allocating resources, which promotes communication and coordination among the different departments or units of an organization. By creating a budget, teams can understand how their individual objectives contribute to achieving the overall goals of the organization, and they can collaborate to ensure that spending is aligned with the priorities of the business. Effective budgeting requires regular communication and feedback, which helps to identify and resolve issues as they arise and fosters a culture of accountability and transparency.

When Administered Wisely, Budgets Promote Communication and Coordination Among the Various