Flexible budgets can be used when there is more than one cost driver $($i$.$e$.,$ measure of activity$).$

A flexible budget performance report with more than one cost driver will always have more unfavorable revenue and spending variances than a performance report with only one cost driver.

A flexible budget performance report with more than one cost driver can contain activity variances but not revenue or spending variances due to the increased complexity.

Performance reports with more than one cost driver typically have more accurate variances than those based on one cost driver.

Multiple Choice

None of the statements are true.

Both statements $2$ and $3$ are true.

All of the statements are true.

Both statements $1$ and $4$ are true.