Which of the following statements about budgeting is false?
A) The master budget should only be prepared by top management.
B) Budgeting forces managers to think ahead and formalize future objectives.
C) Budgets help coordinate the activities of the entire organization.
D) Budgeting is an aid to planning and control.
E) Budgets create standards for performance evaluation.

Question

Quizplus · Accepted Answer

The master budget should be prepared collaboratively with input from department heads and other key personnel in addition to top management. A collaborative approach ensures buy-in and a more accurate budget that accounts for all areas of the organization.

Which of the Following Statements About Budgeting Is False