Answer the following questions as True or False

The merchandise purchases budget is the starting point for preparing the master budget.

Although a fixed budget is only useful over the relevant range of operations, a flexible budget is useful over all possible production levels.

Fixed budget performance reports compare actual results with the expected amounts in the fixed budget.

A cash budget is a plan that includes the expected cash receipts and cash expenditures during each of the periods that it covers.

A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased cheap materials.

A budget performance report that includes variances can have variances caused by both price differences and quantity differences.