Problem:
You are now the Managerial Accountant for Krunchy Kreme, a specialty doughnuts chain that specializes in, you guessed it, Crunchy Doughnuts. You have the option of preparing a static or flexible budget for the year. In your first year, what type of budget would help the business the most, and why? After five years of being in business, would you continue to use the same budgeting style, and why?
After 10 years, you decide to use a Flexible Budget. What factors might you use to determine the sales volume and the various costs?