5 Numbers 1 & 2 are worth 2 points each. 6 1. A budget is prepared before the period begins and is valid for only the planned level of 7 activity. It should not be used for evaluating how well costs are controlled. Answer: 10 2. When a flexible budget is used in performance evaluation, actual costs are compared to: a) budgeted costs at budgeted activity levels. b) what the costs should have been for the actual level of activity. c) the static planning budget d) what the costs should have been for the planned level of activity. Answer: 18 |3. Short answer, worth 6 points. Tell as much as you know, based on the information we've learned in 19 Chapter 9 (Flexible Budgets & Performance Analysis). Feel free to add more rows to the answer box If you 20 need more space. 21 that business