Final answer:
The claim is false; budgeting is a cross-functional activity and is critical for creating accurate and reliable financial forecasts. The difficulty in budgeting stems from the necessity of making choices and recognizing opportunity costs associated with lifestyle expenses.
Step-by-step explanation:
The statement posed by the student is FALSE. Budgeting is indeed a cross-functional activity and involves the coordination of various departments within an organization. It is important because it allows organizations to create a financial roadmap for their activities.
One reason why budgeting can be difficult is the need to make choices. To adhere to a budget, individuals may need to forgo certain expenses like daily trips to Starbucks or subscriptions. These lifestyle changes can be challenging, and they represent opportunity costs that can affect how closely people stick to their budgets.