Choose the most logical course of action. Based on the information gathered, the managers decide that, thanks to their winter and summer product lines, as well as bicycles and ski equipment, New York will be the optimal place to expand their operations. 5. Monitor activities and progress frequently. As time passes, managers should monitor the progress of the company and its competitors in the headquarters. Together with the operational control system, managers can develop a flexible budget, to minimize shortfalls, due to both internal and external factors (Beckett & Doamekpor, 2011). Together with a flexible budget plan, managers are able to visualize the company's long-term objectives for the period and possibly predict some departmental needs, which may involve reallocating resources to support those areas (Kirby, 2003). Furthermore, resource reallocation is likely to influence the behavior of division managers where optimal use of these resources is achieved (Al-Ramadan, 2014). The use of a flexible budget serves to make adjustments to income and expenses, measure against actual production levels achieved and is useful during short financial performances (Blocher et al, 2013). Huang (2012) added that the method identifies differences and similarities between the original budget and the current production level. A flexible budget and standard costs allow managers to divide the variance of total operating income for the period into component variances relating to each of the five factors mentioned above (Blocher et al, 2013). In the next section, an analysis of Ortiz & CO's production, presents a flexible budget, a general budget, an interpretation of the results and a summary of the