Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) A service provider only prepares financial budgets, not operating budgets.
B) A retailer prepares a budget for purchases and then a cost of sales budget.
C) Both retailers and manufacturers prepare income, expense, capital expenditure and cash budgets.
D) A manufacturer prepares a production budget, direct materials, direct labour and factory overhead budgets and then a cost of sales budget.