Budgeting provides a means for defining managers' decision rights (responsibility and financial decision making authority).

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Budgeting involves setting specific financial targets and allocating resources to achieve those targets. This process helps define managers' decision rights by assigning responsibility and financial decision-making authority to them. By doing so, managers can make informed decisions that align with the organization's overall goals and objectives.

Budgeting Provides a Means for Defining Managers' Decision Rights (Responsibility