In using the budget for performance evaluation,accountants compare actual results achieved with budgets to derive
A)variances.
B)delta(s).
C)flexible budgets.
D)master budgets.

Question

Quizplus · Accepted Answer

Comparing actual results with budgets helps to identify any variances, which are the differences between the expected and actual outcomes. The purpose of this analysis is to understand the reasons behind the variances, whether they are favorable or unfavorable, and to take corrective actions as necessary. The other options mentioned (B, C, and D) are related to budgeting but do not specifically address the comparison of actual with planned results.

In Using the Budget for Performance Evaluation,accountants Compare Actual Results