Which of the following statements is incorrect concerning budget preparation?

A.

A disadvantage of a rolling budget is the need for constant time and energy focused on budgeting each period.

B.

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

C.

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

D.

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

E.

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