(1) Discuss the advantages of flexible budgets used by a company over static budgets as a tool for planning and as a tool for control.

Discuss the merits of each advantage. Please include examples so that we can assess your knowledge.

(2) Management systems have three basic components : Planning, control, and feedback. Please examine and submit analysis which explains the relationship between unit # 4 (Budgets) and unit # 5 (Standard Costing and Flexible Budgets). In your response determine their relevance to management.