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

Question

Quizplus · Accepted Answer

The master budget is typically prepared by top management, but it can also involve input and cooperation from lower-level managers and departments. It is a collaborative effort to ensure alignment of goals and objectives across the organization. Therefore, the statement that the master budget should only be prepared by top management is false.

Which of the Following Statements About Budgeting Is False