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Suppose your boss, Mr. Aldrin, is in the process of evaluating how well the company performed in terms of generating revenues and controlling costs. Mr.
Suppose your boss, Mr. Aldrin, is in the process of evaluating how well the company performed in terms of generating revenues and controlling costs. Mr. Aldrin would like to compare the actual income statement with the planning budget income statement. Could you use the variance analysis from Part 1 to persuade him, who is kind of stubborn, that the company should compare the actual income statement with the flexible budget income statement instead? Your explanation should not be more than 1/2 page double spaced with a 12 font size.
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