(TCO 6) Which of the following statements regarding the difference between a flexible budget and a static budget is true? (Points : 11) A flexible budget primarily is prepared for planning purposes, whereas a static budget is prepared for performance evaluation. A flexible budget provides cost allowances for different levels of activity, whereas a static budget provides costs for one level of activity. A flexible budget includes only variable costs, whereas a static budget includes only fixed costs. Variances will always be larger with a flexible budget than with a static budget.