Which of the following is characteristic of a performance report?
A)It uses static budgets.
B)It compares actual costs with budgeted costs.
C)It usually uses flexible budgets.
D)It does not include variances.

Question

Quizplus · Accepted Answer

Performance reports compare actual costs with budgeted costs to analyze the organization's performance. These reports typically use flexible budgets, which adjust to changes in activity levels. Static budgets, which do not change with activity levels, are not suitable for performance reports. Additionally, performance reports include variances to explain the differences between actual and budgeted costs.

Which of the Following Is Characteristic of a Performance Report