Describe the components of a financial plan. What is the difference between a prospective financial plan and a retrospective budget analysis? (True of false, if false make the statement true). In variance analysis you focus only on the extent to which the realized volume of services enabled you to meet your revenue projections. You are not concerned with variable costs.

• Define a flexible budget. How is it useful in analyzing financial performance?

• Why do we define revenue variance as actual revenues static revenues, but then define cost variance as static costs actual costs?

Questions 1. Describe the components of a financial plan. What is the difference between a prospective financial plan and a retrospective budget analysis? 2. (True of false, if false make the statement true). In variance analysis you focus only on the extent to which the realized volume of services enabled you to meet your revenue projections. You are not concerned with variable costs. 3. Define a flexible budget. How is it useful in analyzing financial performance? 4. Why do we define revenue variance as \"actual revenues - static revenues,\" but then define cost variance as \"static costs - actual costs?\