A budget performance report is being prepared and will be sent to the appropriate segment manager. Which term best describes the type of costs and income that should be included in this report?
A) Unfavourable
B) Controllable
C) Administrative
D) Fixed

Question

Quizplus · Accepted Answer

The report should include controllable costs and income. These are costs and income that are directly under the control of the segment manager and can be influenced by their actions. Including unfavourable costs (costs that went over budget) or fixed costs (costs that cannot be changed) may not be useful in evaluating the segment manager's performance. Administrative costs are generally not directly under the control of the segment manager and may not be relevant for this report.

A Budget Performance Report Is Being Prepared and Will Be