Below is a performance report that compares budgeted and actual profit of Atlanta Enterprises for the month of June:
$\begin{array}{lrrr}&\text { Budget } & \text { Actual } & \text { Difference } \
\hline
\text { Sales } & \$ 182,000 & \$ 180,000 & (\$ 2,000) \
\text { Less: } & & & \
\text { Cost of ingredients } & 145,000 & 141,000 & 4,000 \
\text { Salaries } & 24,000 & 23,000 & 1,000\
\text { Controllable profit }& \$ \overline{13,000} &\$ {16,000} &\$ {3,000}
\end{array}$
In evaluating the department in terms of its changes in sales and expenses, what will be most important to investigate?

Question

Quizplus · Accepted Answer

Cost of ingredients is the most important factor to investigate because it has the largest difference between budgeted and actual amounts.

Below Is a Performance Report That Compares Budgeted and Actual