Budgetary Control

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2. Co-ordination
Effective planning & organization contributes a lot in achieving co-ordinations. There should be coordination in the budgets of various departments.
Ex:- Budget of sales should be in coordination with the budget of production. Similarly,
production budget should be prepared in coordination with the purchase budget, and so on.

3. Communication
A budget is a communication device.
A budget is a useful device for motivating managers to perform inline with the company objectives. If individuals have actively participated in the preparation of budgets, it acts as a strong motivating force to achieve the targets.

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