Which of the following statements is true?

If activity is higher than expected, total fixed costs should be higher than expected. If activity is lower than expected, total fixed costs should be lower than expected.

Comparing a static planning budget to actual costs is not a good way to assess whether variable costs are under control.

In a flexible budget, when the activity declines, the total variable cost also declines.

Multiple Choice

Only statement $1$ is true.

Both statements $2$ and $3$ are true.

All of the statements are true.

None of the statements are true.