Respond that the following statements are TRUE or FALSE:

1) A budget is a financial plan that managers use to coordinate a business's activities.

2) Budgeting requires managers to decide upon the course of action and then to plan for the same.

3) Budgets provide a benchmark that motivates employees and helps managers evaluate performance.

4) A goal of the budgeting process is to communicate a consistent set of plans throughout the company.

5) Developing a budget reduces coordination and communication at different levels in an organization.