Which of these statements is FALSE in relation to the potential for negative outcomes when using budgets?

1)

When setting targets, an awareness of potential behavioural impacts is necessary.

2)

Research suggests that when budgetary targets are used to assess managers, those managers might " particularly if they participate in the budgetary process " act to create some slack in the targets, thereby making them easier to achieve.

3)

Whenever particular performance indicators are used to reward managers, care needs to be taken to ensure that the managers are not distracted in a way that is harmful to the organisation, or to its stakeholders.

4)

None of these choices