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

Kathy Nguyen · Accepted Answer

Final Answer : E, Explanation :  The master budget is typically prepared by top management in collaboration with lower-level managers, but not exclusively by top management alone. Budget preparation is often a team effort involving input from various levels of management and departments within the organization.

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