Problem: Molly Moppet's boss, Stan Stodgy, is reluctant to go from relying solely on a static master budget to incorporating flexible budgeting into his company's monthly budget and accountability process. Molly tries to explain the key difference between budgets Static and flexible. Which of the following is this key difference? • A flexible budget is so called because it can be adjusted to reflect different levels of production, while the master budget is based on a specific level of production. • Flexible budgets are only used for specific departments; the results of the entire company are always evaluated based on the master budget. • A master budget is the most appropriate basis for evaluating deviations than a flexible budget, since it is the budget that best fits the management strategy. • A master budget is static, but a flexible budget is adjusted to be more realistic as the real results are known. Choose one.