A flexible budget performance report compares the differences between:
A) Budgeted performance over several periods.
B) Actual performance over several periods.
C) Actual performance and standard costs at the budgeted sales volume.
D) Actual performance and budgeted performance based on actual sales volume.
E) Actual performance and budgeted performance based on budgeted sales volume.

Question

Quizplus · Accepted Answer

A flexible budget is designed to adjust to changes in sales volume, and a flexible budget performance report compares actual performance to the budgeted performance based on the actual sales volume. This helps to accurately evaluate how well the organization is performing against its targets, even if sales volumes differ from what was initially budgeted.

A Flexible Budget Performance Report Compares the Differences Between