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) Static budget performance report.
B) Master budget performance report.
C) Flexible budget performance report.
D) Sales budget performance report.
E) Operating budget performance report.

Question

Quizplus · Accepted Answer

A flexible budget performance report compares actual results to a budget that adjusts for changes in the level of activity. This allows for a more accurate analysis of performance and can help management identify areas for improvement. A static budget performance report would only compare actual results to the original budget, without adjusting for changes in activity levels. A master budget performance report would encompass all budgets and actual results, rather than focusing on one specific area. The sales budget and operating budget are specific components of the overall budget and would not provide the necessary analysis of performance based on activity level.

An Internal Report That Helps Management Analyze the Difference Between