Opponents of the traditional budgeting process argue that the process has to serve too many purposes to be useful in any one particular discipline (e.g. allocating resources, financial planning, performance management, and setting operational targets.) They also argue that because compliance with budgets is often tied to compensation packages, there are often negotiations and biases during the budgeting process, and ethical dilemmas arise.

Required:

1. Counter these arguments by discussing at least two benefits of using traditional budgeting.