Which two costs are compared in a performance report that uses activity flexible budgeting?
A)budgeted costs for actual activity-usage levels and the actual activity costs
B)actual activity costs and budgeted overhead costs
C)actual overhead costs and the budgeted activity costs for actual activity-usage levels
D)static activity budget costs and the budgeted activity costs for the actual activity-usage levels

Question

Quizplus · Accepted Answer

Activity flexible budgeting compares the budgeted costs for the actual activity-usage levels with the actual activity costs, allowing for a more accurate performance analysis. Option B compares actual activity costs with budgeted overhead costs, which is not useful in determining performance. Option C compares actual overhead costs with budgeted costs for actual activity-usage levels, which does not provide a comparison of costs related to actual activity levels. Option D compares static activity budget costs with budgeted activity costs, which does not take into account the actual activity levels.

Which Two Costs Are Compared in a Performance Report That