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

Variance analysis | Business & Finance homework help

Managers may find a flexible-budget analysis more informative as it provides them with the ability to assess how specific changes in activity levels can affect their budget. This is particularly useful when there are significant fluctuations in variable costs, such as labour or material prices. With a flexible-budget, managers can adjust their income and expenses accordingly while still maintaining their desired output and financial goals. Additionally, the analysis also allows for better identification of areas where additional resources may be required, making it invaluable for enhancing managerial decision-making.