For the following questions, circle the best response.
Which of the following is not a benefit of budgeting?
a. Budgeting provides benchmarks against which performance can be measured.
b. Budgeting forces managers to concentrate on planning and to formalize their planning efforts.
c. Budgeting helps managers build favorable variances into the performance evaluation process.
d. Budgeting requires different functional areas of the firm to communicate and coordinate activities.
e. All of the above are benefits of budgeting.
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