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Which of the following statements is correct concerning budget preparation? A. The rolling budget approach is often used in practice because it requires that management

Which of the following statements is correct concerning budget preparation?

A.

The rolling budget approach is often used in practice because it requires that management be in perpetual budgeting mode.

B.

The preparation of the sales budget is the starting point in the budgeting process for all companies.

C.

If a participative approach is used to prepare budgets, only top level managers are involved in the budgeting process.

D.

If a zero-based budgeting approach is used, the annual budgeting process begins with a review of the results of the prior operating period.

E.

Participative budgeting decreases the risk that employees will create budgetary slack.

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