If the actual level of activity is 4% more than planned, then the costs in the static budget should be increased by 4% before comparing them to actual costs.

True or False

a) If you answered true, explain why it is true or the paragraph and page number of the textbook on which you are basing your response.

OR

b) If you answered false, explain what is false about the question or how it could be changed to make it a true statement.