Which of the following statements is correct concerning budget preparation?

A. A sales budget is the starting point for all other types of budgets within a company.

B. A zero-based budget uses information from the prior periods budget and uses it as a base for the current periods budget.

C. An advantage of a rolling budget is the need for constant time and energy focused on budgeting each period.

D. Participative budgeting decreases the risk that budgetary slack will be present in a companys budget.

E. If a top-down approach is used in the budgeting process, lower-level management sets the budget, and communicates it to all other levels in the company.