1. Consider the following statements: I. The main difference between a flexible budget and a static budget is that the static budget is not adjusted for changes in the level of activity. II. To help assess how well a manager has controlled costs, actual costs should be compared to what the costs should have been for the actual level of activity. a. I is true; II is true b. I is true; II is false c. I is false; is true d. I is false; II is false 2. Consider the following statements: I. The Spending variance for a cost is UNfavorable if the actual cost exceeds the cost in the applicable flexible budget. II. A Planning Budget is a budget created at the beginning of the budget period that is valid only for the planned level of activity. a. I is true; II is true b. I is true; II is false c. I is false; is true d. I is false; II is false 3. Consider the following statements: I. Differences between the static planning budget and the flexible budget show what should have happened because the actual level of activity differed from what had been planned. II. If the actual level of activity differs from what was planned, it would be misleading to compare actual costs to the static, unchanged planning budget. a. I is true; II is true b. I is true; II is false c. I is false; is true d. I is false; is false