Final answer:
The statement is false because the budgeted statement of cash flows is part of the financial budget, following the operating budget and not the final step in budget preparation.
Step-by-step explanation:
The statement, 'Preparation of the budgeted statement of cash flows is the final step in preparing the operating budget,' is false. The preparation of the budgeted statement of cash flows is not the final step; it is one of the components of the financial budget, which is part of the broader budgeting process that follows the operating budget. The operating budget typically includes components such as the sales budget, production budget, direct materials budget, direct labor budget, overhead budget, selling and administrative expense budget, and the budgeted income statement. After the operating budgets are prepared, the next phase is to prepare the financial budgets, which includes the capital expenditures budget, the cash budget, and finally the budgeted statement of cash flows and budgeted balance sheet.