Roasted Toasters prepared a 2020 budget for 40,000 units of product.Actual production in 2020 was 45,000 units.To be most useful, what amounts should a performance report for this company compare?

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Quizplus · Accepted Answer

To accurately assess performance and make meaningful comparisons, it's important to compare actual results with a budget adjusted for the actual level of activity. Therefore, comparing the actual results for 45,000 units with a revised budget for 45,000 units is most useful. This approach allows for a fair assessment of performance by accounting for the change in production volume.

Roasted Toasters Prepared a 2020 Budget for 40,000 Units of Product.Actual