Directing and Coordinating :
- Once the budget plans are in place, they can be used to direct and coordinate operations in order to achieve the stated targets.
- A business, however, is much more complex and requires more formal direction and coordination.
- The budget is one way to direct and coordinate business activities and units to achieve stated targets of performance.
- The budgetary units of an organisation are called responsibility centers. Each responsibility center is led by a manager who has the authority over and responsibility for the unit’s performance.
- Objectives and degree of performance expected from a responsibility centres are communicated rapidly.
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