Which of the following statements concerning budget preparation is correct for a merchandiser?

A. Assuming a portion of the companys sales are made on account, bad debt expense under the percentage of sales method is calculated by multiplying credit sales by the estimated uncollectible percentage.

B. Cost function is irrelevant in the preparation of an operating expense budget.

C. Operating expenses differ from operating cash outflows solely as a result of timing differences between when the expense is incurred and when an expense is paid.

D. Beginning inventory amounts for each period are always equal to the prior months ending inventory multiplied by 50%.

E. None of the above are correct.