Below Are Various Statements About Different Budgeting Techniques

question 2

Multiple Choice

Below are various statements about different budgeting techniques.Which is false?

• A)Budget ratcheting tightens targets when performance fails to meet the target by a predetermined percentage
• B)Budget lapsing prevents managers from hoarding funds
• C)Master(static)budgets are prepared for a single level of activity
• D)Budget lapsing encourages managers to spend money regardless of cost or value
• E)None of the choices are correct

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