Question: Explain what the master budget is and specify all its parts. Distinguish between static budget and flexible budget. Explain the concept of variances and the

Explain what the master budget is and specify all its parts.
Distinguish between static budget and flexible budget.
Explain the concept of variances and the importance of determining these variances.
What kinds of decisions can the manager make when analyzing a budget? Explain three concrete examples.
What actions would you take when unfavorable variances occur?

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