Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below. 1. Which of the following is true of a flexible budget? a. It compares the actual costs with the budgeted costs for the budgeted level of activity. b. It compares the actual costs with the budgeted costs for the actual level of activity. C. It compares the actual costs with the budgeted costs for the actual level of activity of the previous year d. It compares the actual costs with the budgeted costs for the budgeted level of activity of the previous year 2. Which of the following is a characteristic of a static budget? a. It enables a firm to compute expected costs for a range of activity levels. b. It has two types: before-the-fact and after the fact. c. It helps a company to have the knowledge of fixed and variable costs. d. It is created in advance, based on a particular level of activity. 3. The difference between the actual amount and the flexible budget amount is known as the a. flexible budget cost b. variable expense C. flexible budget variance d. controllable difference