1. Which of the following statement about budget is correct?

   		A static budget is never appropriate in evaluating a managers effectiveness in controlling costs.
   		A static budget is a projection of budget data at a multiple levels of activity.
   		A static budget is useful in controlling costs when cost behavior is fixed.
   		Budgetary control involves the following steps: develop static budget, analyze differences between actual and budget result, take corrective action and modify historical record.