Performance reports for cost centers should compare actual versus budget ________ costs.
A)controllable
B)uncontrollable
C)fixed
D)variable

Question

Quizplus · Accepted Answer

Performance reports for cost centers should compare actual versus budget controllable costs, which are costs that can be influenced or controlled by the manager of the cost center. This allows the manager to identify areas where they can improve efficiency and reduce costs to meet budget targets. Uncontrollable costs, such as rent or taxes, are outside of the manager's control and therefore not as useful to compare in a performance report. Fixed and variable costs can be either controllable or uncontrollable, depending on the situation.

Performance Reports for Cost Centers Should Compare Actual Versus Budget