Which Statement Is Not Correct

Multiple Choice

Which statement is not correct?

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