 In this presentation, we will take a look at budgetary controls and reporting. In a prior course, in prior presentations, we took a look at the creation of the master budget, a static budget, and the components of the master budget. Here we're going to be focusing more on the flexible budget, but we want to review some of the components of the budgeting process and then go into those components more in-depth concentrating on the flexible budget. For the budgeting process, we'll start off with the creation of the budget. We're going to have to compare the actual numbers to the budgeted numbers. So we're going to create the budget, of course, then we'll have the actual period. We'll run by the time period, the month, the year, then we'll do the comparison. What did we expect to happen in the budget? What actually happened? What are the actual numbers? We'll do that comparison, then we'll analyze the differences, and then we'll strategize. We'll look at the differences, of course, the variances, and then we'll strategize based on those, make changes based on those, and then, of course, implement another budget. We're going to revise the objectives for the new budget, and then we're going to create, of course, the new budget. Again, this is going to be the standard cycle that we will be going through within the budgeting process, of course. We plan, we budget, we project out with that budget, then the time period passes. We compare what happened to what our projection was. We look at the differences, and then we make changes based on those differences. Budget report timing. Typically, as we saw in prior course, in prior presentations, when just looking at the static master budget, we're considering a budgeting for a year's time period, and then we could break that down into quarters, and then often into months. That would be the standard types of budgeting process that we would have. We'd say, hey, we're going to budget this out into a year. We want to break that out into quarters so that we can then review each quarter, and possibly break that out into months so that we can have a review each month comparing budgeted numbers to actual numbers on that basis. Why budget? The budget promotes future focus, analysis, thought, and direction. So remember that when we're considering the budget, we're focusing out into the future, and we're getting that kind of vision statement out. Well, the vision is going to be the long-term focus. The budget really takes that long-term vision and puts it into digestible chunks, actionable chunks, yearly chunks, quarterly chunks, monthly chunks, and it allows everybody in the organization then to be kind of focused towards that immediate goal, so our operations from a day-to-day standpoint. Then as we make day-to-day decisions, we can align to the immediate goal and have all of our conversations basically within the decision-making process on a day-to-day basis in alignment with those future objectives. Communicate the plans to the organization. Once we have the budget put together, remember that that's going to be our communication tool. That's going to be our roadmap type tool that we're going to use to communicate to the organization, and the better the budget is put together, the more clear that roadmap should be, and again it should be those actionable steps that we can kind of