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What is Flexible Budget and Variance Analysis about?

This document discusses flexible budgets and variance analysis. It begins by explaining the difference between static and flexible budgets, with flexible budgets adjusting planned budgets based on actual output levels. Variances measure differences between actual and budgeted amounts and help managers evaluate performance. The document then describes three levels of variance analysis using flexible budgets: level 1 compares actuals to static budgets, level 2 introduces flexible budgets and separates volume

Author

Tariku Kolcha

Language

EN