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), and which presents the differences between actual and budgeted amounts as variances, is called a(n):
A) Sales budget performance report.
B) Flexible budget performance report.
C) Master budget performance report.
D) Static budget performance report.
E) Operating budget performance report.

Question

Quizplus · Accepted Answer

A flexible budget performance report analyzes the differences between actual and budgeted performance based on the actual sales volume (or other level of activity) by presenting the differences as variances. The other options do not mention the use of a flexible budget, which is a key element in the analysis of variances.

An Internal Report That Helps Management Analyze the Difference Between