Reference no: EM132605274

Question 1: Assess the Usefulness of the Static Budget

Question 2: The static budget does not reflect the actual results at the end of the period. There are several budget variances that will compare the actual results to the static budget, but many managers prefer to use a flexible budget variance system. Will the use of static budget variances result in useful information and effective decision making by managers? What are the advantages and disadvantages of using both the static budget variances and the flexible budget variances. Provide rationale and evidence to support your argument.