Which of the following is a difference between a static and a flexible budget?

Multiple Choice

• Static budgets use the same fixed cost amounts, whereas flexible budgets change the amount of fixed costs at different levels of activity.

• Static budgets are based on the same per-unit variable amount, whereas flexible budgets are based on multiple per-unit variable amounts.

• Static budgets are based on a single estimate of volume, whereas flexible budgets show estimated costs and revenues at a variety of activity levels.

• None of these answers are correct.