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. 6- Companies can use either a predetermined overhead rate or a manufacturing overhead budget 7- A standard is a unit amount, whereas a budget is a total amount. a 8- Management by exception means that management will investigate all areas where actual results are greater than planned results. 9. A materials quantity variance is calculated as the difference between the standard direct materials price and the actual direct materials price multiplied by the actual quantity of direct materials used 10- The activity index used in preparing a flexible budget should be the basis of the variable costs that are being budgeted