1) Some people suggest that because of the complexities and uncertainties in the business and economic environment, it is pointless to plan and to budget. Based on what you know from your study of management accounting, why is this bad advice? How would you respond to this issue? Make specific reference to relevant issues in the course

2)

a) Why should we not be satisfied withallfavourable orallunfavourable variances?

b)How can we tell that the process of variance analysis is working effectively?

c) List three(3) actions that should be taken after the variances have be identified. Identify the people/positions WHO should be addressed.

WHAT questions should be addressed, and reasons WHY variances are unacceptable

3) What are the benefits of a flexible budget?