Which of the following is NOT a benefit of a static budget performance report?
A) It is useful in evaluating a manager's effectiveness when actual sales approximate budgeted amounts.
B) It is useful in evaluating a manager's control over fixed costs.
C) It is useful in evaluating a manager's control over variable costs.
D) It is useful in evaluating a manager's control over fixed selling and administrative expenses.

Question

Quizplus · Accepted Answer

Static budgets are fixed for the period and do not adjust based on changes in activity levels, making them less effective for evaluating a manager's control over variable costs, which are expected to fluctuate with activity levels.

Which of the Following Is NOT a Benefit of a Static