It would be so misleading if we failed to flex our budget? If we failed to flex our budget, then we would not compare like with like. These were the initial views of Rahman Saeed, the new president of Makkah Private Hospital upon reading through the hospitals performance report at end of 2020. The performance report while indicating that the actual number of patients treated by the hospital in 2020 has increased by 30% due to COVID-19 pandemic, the Emergency, Nursing and Pharmacy departments are all showing unfavorable cost variances. Comment on Rahman Saeeds initial evaluation of the hospitals performance report and suggest ways to improve the hospital budgetary control system. Provide some examples that support your answer.