1. To create a flexible budget, managers multiply the __________________ volume by the ________________________________________ in order to arrive at budgeted variable expenses. Fixed expenses should be ________________________ as originally budgeted in the master budget unless the new volume is in a different relevant range. The resulting flexible budget is the budget managers would have prepared at the beginning of the period had they known the ______________________ volume.

2.The ROI can be restated as the product of _________________ x ___________________.