An internal report that helps management analyze the difference between actual performance and budgeted performance based on the actual sales volume (or other level of activity)is called a(n):
A)Sales budget performance report.
B)Flexible budget performance report.
C)Master budget performance report.
D)Static budget performance report.
E)Operating budget performance report.

Question

Quizplus · Accepted Answer

A flexible budget performance report compares actual performance to what the budgeted performance should have been based on the actual level of activity. This allows management to analyze the difference between actual and budgeted performance more accurately as it takes into account the varying levels of activity. The other options do not specifically take into account the level of activity and may not provide as accurate of a comparison.

An Internal Report That Helps Management Analyze the Difference Between