Performance reports for cost centers compare actual
A) total costs with static budget data.
B) total costs with flexible budget data.
C) controllable costs with static budget data.
D) controllable costs with flexible budget data.

Question

Quizplus · Accepted Answer

Performance reports for cost centers should compare controllable costs (costs that can be influenced by the cost center manager) with flexible budget data (budget that adjusts for changes in activity levels). This will give a more accurate picture of how the cost center performed in relation to its goals and allow for better decision making regarding future budgets and resource allocation.

Performance Reports for Cost Centers Compare Actual