Which of the following statements is not true regarding flexible budgets?
a. Flexible budgets can be prepared for multiple levels of activity.
b. Flexible budgets can be prepared before the period begins or after the period is over.
c. Flexible budgets are more than master budgets for performance evaluation.
d. Flexible budgets are more important than master budgets when all aspects of budgeting are considered

2. Basing manager compensation on firm stock performance diversifies risk.
a. True
b. False