Respond that the following statements are TRUE or FALSE:

1) A static budget is prepared for only one level of sales volume.

2) A favorable variance reflects a decrease in operating income.

3) A variance is the difference between an actual amount and a budgeted amount.

4) A flexible budget summarizes revenues and expenses for various levels of sales volume within a relevant range.

5) The difference between the expected results in the flexible budget for the actual units sold and the static budget is called the sales volume variance.