In a performance report,
A) differences between actual costs and allowed costs are always undesirable.
B) expenditures of less than allowed amounts are undesirable.
C) expenditures of more than allowed amounts are not permitted to occur.
D) expenditures of less than allowed amounts are desirable.

Question

Quizplus · Accepted Answer

Expenditures of less than allowed amounts are desirable because they result in cost savings and increased efficiency. However, it is important to ensure that the quality and scope of the project are not compromised due to reduced expenses. Differences between actual costs and allowed costs are not always undesirable and may be within acceptable limits. Expenditures of more than allowed amounts may occur if the project has unforeseen circumstances or changes in scope, but it may require additional authorization and approval.

In a Performance Report