Chapter 22, Problem 5DQ

To determine

Introduction:

Budgeting for a company is the charting out of business plans for a future time period that will then help the company in controlling its income, expenses and resources. Every company works in co-ordination with different department like Accounts, Sales, Production, Marketing, HR etc. with each department specialized in their own activities. Departments have greater knowledge and visibility of their own department and thus if they are involved in the budgeting, the budgets will be more robust.

Requirement 1:

To State:

Why is departmental participation important for budgeting