When Vanguard Company district managers submitted their preliminary budget proposals, top management discovered that the southern district manager had requested a new project management information system. Unfortunately, the system is incompatible with the system used at headquarters. Which of the following advantages of budgeting reduces the likelihood that the company will end up with two incompatible systems?

Question

Quizplus · Accepted Answer

Coordination is the advantage of budgeting that reduces the likelihood of the company ending up with two incompatible systems. Coordination helps ensure that budget proposals are consistent and aligned with the organization's overall goals and objectives. In this case, if the district managers had coordinated with top management before submitting their budget proposals, they would have realized the incompatibility issue with the proposed project management information system and may have come up with an alternative solution.

When Vanguard Company District Managers Submitted Their Preliminary Budget Proposals