All charges for services computed using budgeted rather than actual rates should be removed from an operating department's performance report.

Question

Quizplus · Accepted Answer

Using budgeted rates for charging services in an operating department's performance report is a common practice for planning and control purposes. It allows for consistent comparison against the budget, regardless of actual rate fluctuations, helping in assessing the department's efficiency and performance without penalizing or benefiting it for variances outside its control.

All Charges for Services Computed Using Budgeted Rather Than Actual