The Master Budget is useful for setting a company-wide plan, communicating expectations and controlling operations by comparing budgeted results to actual results. The Flexible Budget is used more to plan for various scenarios, especially those outside the company's control (like an increase or decrease in demand, or a global pandemic).

Question: If you were the Chief Executive Office (CEO), Chief Financial Officer (CFO) or Chief Operating Officer (COO) of a company, how would you use the Master Budget and Flexible Budget together to help to manage the organization?

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