Which of the following statements characterizes a performance report prepared for use by a production line department head?
A)The costs in the report should include only those controllable by the department head.
B)The report should be stated in dollars rather than in physical units so the department head knows the financial magnitude of any variances.
C)The report should include information on all costs chargeable to the department,regardless of their origin or control.
D)It is more important that the report be precise than timely.

Question

Quizplus · Accepted Answer

A performance report prepared for use by a production line department head should highlight the costs that are controllable by the department head. This will enable the head to effectively manage the department's costs and take necessary corrective actions. Therefore, option A is the correct choice.

Which of the Following Statements Characterizes a Performance Report Prepared