I am a CEO of a Regional Medical Center and am reviewing the planning and budgeting process for next fiscal year with the Committee Board of Directors. They want to change the process and have requested I review the following:

-should the budget be zero based or conventional?

-should I be in favor or top-down or bottom up process?

-should the budget be fixed or flexible?

-explain the purpose of variance analysis to the Board Members

-explain to the Board members how planning and budgeting are linked

I have to provide them a written response via memo.