Performance reports are accounting reports that compare
A) planned data with actual data.
B) audited data with actual data.
C) managers' bonuses with performance ratings by supervisors.
D) planned data with industry standards.

Question

Quizplus · Accepted Answer

Performance reports compare planned data (such as budgets and forecasts) with actual data (such as sales revenue and expenses). This allows managers to evaluate how well they have achieved their goals and identify areas where they need to improve. Comparing audited data with actual data is not a typical use of performance reports, and comparing managers' bonuses with performance ratings is not a common or advisable practice. While comparing planned data with industry standards can be informative, it is not the primary purpose of performance reports.

Performance Reports Are Accounting Reports That Compare