When a company's district managers submitted their preliminary budget proposals, top management discovered that the southern district manager had requested a new project management information system. Unfortunately, the system is incompatible with the system used at headquarters. Which of the following advantages of budgeting reduces the likelihood that the company will end up with two incompatible systems?

a. Planning

b. Coordination

c. Performance measurement

d. Corrective measures

a. Planning and b. Coordination

Explanation:

Planning refers to deciding in advance a future course of action so as to achieve goals.

Coordination refers to synchronization and coherence between people and departments to collectively and efficiently carry out a task.

In the given case, the two systems operating at head office and at the branch office are completely different which would lead to inefficient management.

The advantages of budgeting which might reduce the likelihood of implementation of two different systems would be proper planning and coordination between the two offices.

Coordination would eliminate the ambiguity and would lead to a common decision.