1. When does a company need to implement a flexible budget? Is it the beginning of making a business, preparing a budget or when it\'s already running? Explain with an example!
2. Why in flexible budget are there activity variances and revenue and spending variances? What are the differences between the two?
3. What are the advantages in implementing flexible budget? Does every company need to make a flexible budget?
4. Why when making flexible budget, the profit that was originally calculated can turn into loss or even vice versa?