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NAME: KEEFE P. MENTINO BFIN GR. 12-ABM
ACTIVITY #1: BUSINESS FINANCE: 2ND QUARTER: MODULE 1 / WEEK 1
ANSWER BRIEFLY:
1. Explain how budgets facilitate planning and coordination.
Budgets are extremely helpful to managers and anyone involved in the management of
business especially in planning and coordination. It is a tool or mechanism that helps them in the
way that it states the objectives of the business in monetary terms and is used as basis in evaluating
the results of their operations by comparing actual figures over the previous years. It also provides
possible steps for the managers in order to achieve those objectives. These are the ways that
budgets facilitate planning. On the other hand, budgets facilitate coordination in a sense that it is
a tool for communication between members and groups across the organization. The budget
process allows managers to coordinate activities and plans for now and for the future.
2. Anticipate possible human relations problems caused by budgets
Employees may tend to have a negative opinion and perception for how the budget was
formulated by the managers especially if it is only used to limit their spending. They may tend to
have a negative feedback on it and would create possible relationship problems with one another.
