Static budgets are the best benchmarks for preparing a performance report.

Question

Quizplus · Accepted Answer

Static budgets are based on expectations and assumptions made before the actual period being reported on. As a result, they may not reflect the actual conditions and changes over the period. A more suitable benchmark for preparing a performance report is a flexible budget or a variance analysis, which takes into consideration actual results and adjusts the budget accordingly.

Static Budgets Are the Best Benchmarks for Preparing a Performance