Question: Below are various statements about different budgeting techniques. Which is false? Budget ratcheting tightens targets when performance fails to meet the target by a predetermined

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

Budget ratcheting tightens targets when performance fails to meet the target by a predetermined percentage

Budget lapsing prevents managers from hoarding funds

Master(static) budgets are prepared for a single level of activity

Budget lapsing encourages managers to spend money regardless of cost or value

None of the above

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