A. Discuss the following questions and, as a manager, explain how you would use or have used these concepts in the workplace.

1. How are operational budgets created?

2. How is capital budgeting used to make decisions?
B. Why might managers find a flexible-budget analysis more informative than static-budget analysis?
C. How might a manager gain insight into the causes of flexible-budget variances for direct materials, labor, and overhead? Please provide on numerical example to support your thoughts.

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