TRUECARE Consultancy organizes seminars for small and medium-sized businesses for the East Coast area. The seminars are run on premises which are rented especially for conducting of seminar only. The seminars are presented by freelance expert speakers. Each seminar is of standard type and therefore be treated alike for budgetary control purposes. Currently, TRUECARE uses fixed budgets to control expenditure. The following data shows the actual costs of the seminar's activities for the month of December 2020, compared to the budgeted figures. Number of seminars conducted Expenditure: Seminar Activities December 2020 Actual Budget Variances 10 seminars 12 Seminars 2 Seminars Speaker's fee 5,000 6,360 1,360 Rental of premises 3,000 3,000 Depreciation of equipment 400 360 (40) Stationery 1,060 1,200 140 Catering 3,000 3,500 500 Insurance 1,400 1,640 240 Administration 3,300 3,240 (60) You have recently started to work as the assistant management accountant for TRUECARE Consultancy. In a meeting with the training manager, he expressed some doubt about the usefulness of the above statement in providing control information on the seminar's activities. Since he has heard about the flexible budget from his business associate, he become very interested in the possibility of using flexible budgets to control the seminars activities. As an assistant to the management accountant, you spent some time analyzing the behavior patterns to the costs incurred in conducting of seminars. Your findings are summarized as follows: i. Depreciation of equipment is a fixed cost ii. iii. Administration is a fixed cost The budget figures for the catering costs and insurance costs include a fixed element as follows: -Catering RM500 -Insurance RM200 QUESTION TRUECARE Consultancy organizes seminars for small and medium-sized businesses for the East Coast area. The seminars are run on premises which are rented especially for conducting of seminar only. The seminars are presented by freelance expert speakers. Each seminar is of standard type and therefore be treated alike for budgetary control purposes. Currently, TRUECARE uses fixed budgets to control expenditure. The following data shows the actual costs of the seminar's activities for the month of December 2020, compared to the budgeted figures