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A flexible budget: An activity variance is due to the difference between the level of activity used in the flexible budget and the actual level of activity

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1. A flexible budget:
2. An activity variance is due to the difference between the level of activity used in the flexible budget and the actual level of activity.
3. Fixed costs should be included in a flexible budget even though they do not change when the level of activity changes.
4. An unfavorable spending variance may reflect waste as well as paying too much for inputs.
5. A flexible budget should not be used when making comparisons to actual results such as actual expenses.
6. A static planning budget is:
7. A flexible budget report should contain variable costs and mixed costs but not fixed costs.
8. A flexible budget cannot be used to estimate what costs should have been at a given level of activity.
9. Hoppy Corporation compares monthly operating results to a static budget prepared at the beginning of the month. When the actual level of activity is less than budgeted, which of the following would be true?
10. Comparing actual results to a budget based on the actual activity for the period is possible with the use of a: