Premier Men's Clothing is creating a budget to manufacture men's suits, shirts, and ties. Premier must consider total projected sales for each product line, and the resources required for each line. Which answer choice regarding budgeting is incorrect?

A) Premier's budget allocates resources to each product line, so the firm can achieve its long-term goals in terms of sales and profitability

B) Premier's budget is backward-looking, in order to replicate past financial results. Premier has generated large profits in recent years

C) Creating a budget makes performance evaluation easier, because financial expectations for each product line are set in advance

D) Premier's managers compare budgeted amounts to actual results, and analyze the differences (called variances) to make improvements