The most effective use of the interim ________ is to establish cost standards and compare the actual amount with the budgeted amount for that time period.
A) cash flow statement
B) inventory analysis
C) balance sheet
D) income statement

Question

Quizplus · Accepted Answer

The income statement shows the revenue and expenses for a specific time period, making it the most effective choice for comparing budgeted amounts with actual amounts during that period. The other options (cash flow statement, inventory analysis, balance sheet) do not provide as much detail on expenses and revenue for a specific time period.

The Most Effective Use of the Interim ________ Is to Establish