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Why is budgeting so important? What are the appropriate uses of a budget? How can budgets be mismanaged or misunderstood?

Why is budgeting so important? What are the appropriate uses of a budget? How can budgets be mismanaged or misunderstood?

Why is budgeting so important? What are the appropriate uses of a budget? How can budgets be mismanaged or misunderstood? What are some criteria you would use to choose between a fixed and a flexible budget? Explain your answers.