Which of the following statements regarding standard costing is false?

Standards relate to the operational goals for quantity and price for direct materials, direct labor, and manufacturing overhead.

Standard costing encourages managers to pursue efficiencies and operational improvements beyond the set standards.

One disadvantage of standard costing is that managers are too focused on meeting standards, and make decisions that are detrimental to the organization in the long-term

Total budget variances should always be broken into their quantity and price variances to determine the underlying cause of the variance.