A _____ summarizes actual costs, standard costs, and the differences for the units produced.
A) zero-base report
B) budget performance report
C) budgeted balance sheet
D) budgeted income statement

Question

Quizplus · Accepted Answer

The budget performance report compares actual costs with standard or budgeted costs, and highlights any differences. This allows managers to identify areas where costs exceeded or fell below expectations and take corrective action as necessary. A zero-base report, on the other hand, is a budgeting method that involves starting from scratch each period and justifying all expenditures. Budgeted balance sheet and budgeted income statement are part of the budgeting process, but do not provide the comparison of actual versus budgeted costs.

A _____ Summarizes Actual Costs, Standard Costs, and the Differences