Question 11 (1 point) Which of the following statements is true? Only statement I is true. Both statements II and III are true. All of the statements are true. None of the statements are true. 1. Differences between the static planning budget and the flexible budget show what should have happened because the actual level of activity differed from what had been planned. 2. An unfavorable activity variance for revenue indicates that activity was less than expected when the static planning budget was developed. 3. The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget.

Which of the following statements is true? 1. Differences between the static planning budget and the flexible budget show what should have happened because the actual level of activity differed from what had been planned. 2. An unfavorable activity variance for revenue indicates that activity was less than expected when the static planning budget was developed. 3. The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget. Only statement I is true. Both statements II and III are true. All of the statements are true. None of the statements are true