Budgets benefit organizations by

• guiding management to align organizational goals with activities and resource commitments.

• promoting employee participation and depart¬ mental coordination.

• enhancing the managerial functions of planning, controlling, and problem solving.

• allowing management to forecast future perfor¬ mance to determine acceptability and, if neces¬ sary, provide an opportunity for change.

• providing a benchmark against which to judge how effectively and efficiently organizational goals were met.

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