Which of the Following Statements About Budgeting Is NOT True

question 106

Multiple Choice

Which of the following statements about budgeting is NOT true?

• A)The operating budget should be prepared by top management,rather than mid-management personnel,because they have the overall objectives of the company in mind.
• B)Budgeting is an aid to planning and control.
• C)Budgets help to coordinate the activities of the entire organization.
• D)Budgets promote communication and coordination between departments.

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Definitions:

Synthesis Reaction

A chemical reaction in which two or more substances combine to form a more complex product.

Decomposition Reaction

A chemical reaction in which a single compound breaks down into two or more simpler substances.

Oxidation

Loss of one or more electrons from a molecule.

Dehydration Reaction

A chemical reaction in which two molecules combine to form a larger molecule, with the removal of a water molecule.