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.

Question

Quizplus · Accepted Answer

This statement is not correct as a service provider also prepares operating budgets, which include budgets for revenue, expenses, capital expenditures, and cash.

Which Statement Is Not Correct