Identify each statement as True or False, indicate how to correct the statement.

1. Standard cost is the industry average cost for a product or service.

2. A sales budget should be prepared before the production budget.

3. A merchandiser has a merchandise purchases budget, and a manufacturer has a materials purchases budget.

4. Evaluating a manager's performance in controlling variable costs is effectively achieved using a static budget.

5. The learning and growth perspective on the balanced scorecard includes measures monitoring product development, production, delivery, and after-sale service.