What is the point in flexing the budget in the context of variance analysis? Does flexing imply that differences between the budget and actual volume of output are ignored in variance analysis? Explain your answer in the context of this week's readings.
The journal article prescribed for this week is required reading and can be found in the online library at the University of Liverpool:
Guven-Uslu, P. & Conrad, L. (2008) ‘Uses of management accounting information for benchmarking in NHS trusts', Public Money & Management, 28 (4), pp. 239-246, Wiley Interscience [Online]. DOI: 10.1111/j.1467-9302.2008.00650.x (Accessed 30 June 2009).