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Iamp;#39;m Larry Walther this is chapter 22 principles of accounting dot-com and in this module we will consider how flexible budgets can be used to adapt outcome assessments in the previous module we saw a performance report that was static in nature it was developed for a single presumed level of activity but when actual output varies from budgets variances are likely to arise and they can be misleading remember higher variable costs are usually associated with higher volume but higher volume is oftentimes seen as a good thing so by having higher volume we have higher variable cost a static budget that only shows the budgeted cost independent of the level of volume achieve can produce some unfavorable signals when in fact things are going quite well so letamp;#39;s see how a flexible budget is going to work this is an example that corresponds to an example in your textbook boosters dairy produces a premium brand of ice cream itamp;#39;s static budget is based on 100,000 ga
