I.+Module+8000+Introduction+and+Learning+Objectives

=I. Module 8000 Introduction and Learning Objectives ldm=

**__Introduction:__** Module 8000 discusses flexible budgets and how they can be used for performance analysis. Flexible budgets can be created based on varying levels of activity and for the actual level of activity. Using flexible budgets to show costs for varying levels of activity are beneficial for planning because managers are able to see what their costs will be at the different activity levels. Creating this budget for the actual level of activity allows managers to analyze a company’s performance by comparing actual amounts to budgeted amounts and determining where variances exist. This enables managers to locate problem areas.

**__Learning Objectives:__**
 * 1) Define flexible budgeting and how it is used for planning and control.
 * 2) Explain the differences in a static versus a flexible budget.
 * 3) Know how to prepare a flexible budget for varying levels of activity.
 * 4) Know how to prepare a flexible budget for the actual level of activity.
 * 5) Discuss how flexible budgets can be used for performance analysis.