1. Budgets can have a positive or negative effect on human behavior depending on the manner in which the budget is developed and administered. 2. The direct materials budget must be completed before the production budget because the quantity of materials available for production must be known. 3. The starting point in developing the master budget is the preparation of the production budget 4. In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period. 5. The direct labor budget begins with the required production in units from the production budget. Which of the above statements are FALSE? Statement #2, #3, and #5 are false Both Statement #2 and #3 are false Both Statements #3 and 14 are false Only Statement #4 is false Statement #2, #3, and #4 are false Only Statement #3 is false Both Statements #2 and #4 are false Both Statements #3 and #5 are false Both Statement #4 and 85 are false O Statement #3, #4, and #5 are false O All of the Statements are false