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

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Answer: The master budget should only be prepared by top management.

Explanation: That the master budget should only be prepared by top management is the false statement among the answer options. Budgeting is the act of constructing a budget which is the amount of money or resources earmarked for a particular institution, activity or time-frame. It is an aid to planning and control, helps in creating standards used in performance evaluation, it aids organisations in coordinating  their activities in addition to formalizing future goals and objectives, but however, the master budget which is the summary of the divisional budget and a continuous financial plan is not reserved for top management alone as even those at lower levels could aid in its preparation.

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