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1. When an effective budget has been created it is a powerful tool for the manager to use during the project implementation.
2. The budget’s creation has already been used to:
a) Plan all activities
b) Ensure all activities are necessary
c) Cost each activity
3. In addition, during the project’s implementation, the budget provides a basis for the manager to evaluate activities and staff performance.
4. The budget also operates to foster coordination between activities and cooperation between staff. The budget is also a tool that can be used to create awareness of business costs.
5. The budget provides a vehicle whereby the organization can satisfy its contractual requirements.