Children's Hospital of the King's Daughter in Norfolk, Virginia, introduced a new budgeting method that allowed the hospital's annual plan to be updated for changes in operating plans. For example, if the budget was based on 400 patient-days and the actual count rose to 450 patient-days, the variable costs of staffing, lab work, and medication costs could be adjusted to reflect this change. The budget manager stated, "I work with hospital directors to turn data into meaningful information and effect change before the month ends."

a) State the old budgeting method and the new budgeting method.

b) Provide an analysis of the new budgeting method by comparing it to the old budgeting method.