Which of the following is wrong?

1.The ending point of the operating budgets is budgeted balance sheet, which can be achieved using only operating budgets.

2.If the company wants to reduce its finished goods inventory, they can achieve this by producing fewer units than they plan to sell.

3.Direct materials purchases budget starts with budgeted production, which is the ending point of the production budget.

4.The control cycle monitors results to assess if we achieve the plan. Comparing actual results to the flexible budget is a way of controlling the cost.