Final answer:
An example of coordination and communication in the budgeting process is when a budget requires integrated input from various business units and functions, promoting organizational cohesion. This drives the alignment of departmental budgets with the overall company objectives.
Step-by-step explanation:
An example of the coordination and communication function of the budgeting process is: A) A budget demands integrated input from different business units and functions. This emphasizes the necessity for departments to work together and align their goals and resources for overall organizational efficiency.
It suggests a unified approach to planning and resource allocation, ensuring all parts of the organization are moving towards the same objectives. Coordination ensures that adjustments in one department are reflected across others, maintaining the cohesion of the budgetary framework.
Contrastingly, B) is more about motivation, C) represents independence rather than coordination, and D) indicates isolation of departments, which goes against the principle of integrated budgeting.
Effective budgeting helps track financial activities and supports strategic decision-making, but achieving this requires overcoming the challenges of coordination and communication. These challenges of coordination can arise from differing priorities within a company but can be addressed through the budgeting process that encourages integrated planning and adjustments.
Therefore, the correct answer is A) A budget demands integrated input from different business units and functions.