Sterling Furniture is creating a budget, and senior management is discussing the scenarios that the budget must
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Question:
Sterling Furniture is creating a budget, and senior management is discussing the scenarios that the budget must address. Which answer choice regarding budgeting is false?
A) Sterling's budget must be flexible, in case the competitive environment changes
B) If a recession causes a decline in sales, Sterling should maintain its budgeted production output
C) The budget should consider if Sterling's business cycle may change, due to technology changes that may speed up furniture production
D) Sterling must be able to finance an increase in production capacity, in a growing economy
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