Define a flexible budget. Provide an example of how a flexible budget is used in the real world. Define variance analysis.

1. Define a flexible budget. Provide an example of how a flexible budget is used in the real world.

2. Define variance analysis. Compare and contrast a direct materials variance analysis with a labor variance analysis.

3. What is a responsibility center? Provide an example of a responsibility center. Explain how to use a return on investment (ROI) to evaluate performance.