Which of the Following Statements About Budgeting Is False

question 137

Multiple Choice

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 long-range objectives.
• E)The master budget should only be prepared by top management.

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Definitions:

Legitimate Power

Authority that is recognized and accepted by others within an organization due to a formal position or role.

Formal Authority

The power granted to an individual or organization by virtue of position or status, enabling them to enforce rules and make decisions.

Prerogatives

Special rights or privileges exclusively reserved for a particular person, group, or class.

Rational Persuasion

A method of influencing others through logical arguments and factual evidence to change beliefs, attitudes, or behaviors.