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Learning Objective $20-$C$1$: Describe the benefits of budgeting.

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Planning is a management responsibility of critical importance to business success. Budgeting is the process management uses to formalize its plans. Budgeting promotes management analysis and focuses its attention on the future. Budgeting also provides a basis for evaluating performance, serves as a source of motivation, is a means of coordinating activities, and communicates management$$s plans and instructions to employees.

Budgeting Process

Knowledge Check $01$

Place the following steps in the correct order as they relate to the budgetary control process: