30/4. Which of the following is not true concerning a 'top-down' budgeting process

A. The budget sets out the board's targets for the forthcoming period

B. Senior management prepare a budget with little or no input from middle management

C. The time taken to produce the budget is reduced

D. The budget process starts with sales, then progresses to production, materials usage and other functional budgets

32/4. A service company has annual sales of 3.2 million and a gross profit margin of 15%. The company has no inventory. The company is currently experiencing short-term cash flow difficulities and the accountant has decided to delay its payments to trade suppliers by one month,

Calculate the amount by which the cash balance will benefit in the short-term from this change in policy, assuming sales are spread evenly over the year. Round your answer to the nearest .

A. 206,227

B. 226,667

C. 231,884

D. 266,667