Why might managers find a flexible-budget analysis more informative than static-budget analysis?

Variance Analysis| Business & Finance homework help

A flexible budget analysis can be more useful to managers, as they are able to see how changes in their activity level will affect the budget. This can be especially helpful when variable costs fluctuate significantly, like labour and material prices. A flexible budget allows managers to adjust incomes and expenditures while maintaining desired financial and output goals. This analysis can also be used to better identify the areas in which additional resources are needed, enhancing management decision making.