Which of the following statements is true? 1. Fixed costs should usually be included in performance reports because fixed costs are generally controllable. II. Fixed costs should not be included in a flexible budget because they do not change when the level of activity changes.

Which of the following statements is true? 1. Fixed costs should usually be included in performance reports because fixed costs are generally controllable. II. Fixed costs should not be included in a flexible budget because they do not change when the level of activity changes