Which of the following statements is false?

Multiple Choice

The master budget includes operating budgets $($e$.$g$.,$ production budget$)$ and financial budgets $($e$.$g$.,$ cash budget$).$

When evaluating costs, a favorable variance indicates that actual costs are greater than budgeted costs.

A favorable variance is not necessarily good, and an unfavorable variance is not necessarily bad.

Variance analysis uses variances to evaluate the performance of individuals and business units.