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Which of the following is true of a traditional master budget? a. It uses the zero-base budgeting
approach. b. It is department oriented. c. It recognizes interdependencies. d. It is dynamic in
nature.
Solution
Correct Answer is b. it is department Oriented
One of the critisism of Traditional Master Budget is that it is Department oriented and does not
recognise independencies among departments, further it is static not dynamic in nature.

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