paraphrase formal There should be a flexible budget to track the performance of activities (Davis & Davis., 2020). A flexible budget performance report will provide a relevant variance analysis. The new knowledge will help Ken realize that growing sales and revenue does not always mean cutting costs. Ken's behavior may improve as he develops faith in the modified report. Ken's performance report was lacking; the only way to keep him growing was to guide him. It will show the relevance of Operating Income and how it has decreased, which he must understand. Ken will improve pricing and expenditure to help the firm expand and profit