[Verse 1] Static budgets tell just one story, locked in time and place But business volumes rise and fall, we need a flexible space Fixed costs stay the same regardless, rent and salaries hold Variable costs move with activity, that's the pattern to behold [Chorus] Flex the budget, adjust the plan Variable rates and fixed amounts, now you understand Volume changes, costs will too Flexible budgets show what's really true F-L-E-X spells the way Better performance evaluation day by day [Verse 2] Start with your activity level, units sold or hours worked Then separate your cost components, see where patterns lurk Manufacturing overhead splits, some fixed and some variable Direct materials always flex, labor rates are comparable [Chorus] Flex the budget, adjust the plan Variable rates and fixed amounts, now you understand Volume changes, costs will too Flexible budgets show what's really true F-L-E-X spells the way Better performance evaluation day by day [Bridge] When actual volume differs from the plan you made Don't compare to static numbers, that's a rookie's trade Flex your budget to the actual level that occurred Then you'll see true variances, performance truth preferred [Verse 3] High activity means more variable costs will flow Low activity keeps fixed costs steady, variables go Formula budgeting helps you see what should have been Actual versus flexible shows where you win [Chorus] Flex the budget, adjust the plan Variable rates and fixed amounts, now you understand Volume changes, costs will too Flexible budgets show what's really true F-L-E-X spells the way Better performance evaluation day by day [Outro] Fixed plus variable times activity That's flexible budgeting mastery Adjust, compare, and analyze Flexible budgets make you wise
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