An internal report that helps management analyze the difference between actual performance and budgeted performance based on the actual sales volume (or other level of activity)and that presents the differences between actual and budgeted amounts as variances is called a(n):
A) Sales budget performance report.
B) Flexible budget performance report.
C) Master budget performance report.
D) Static budget performance report.
E) Operating budget performance report.

Question

Quizplus · Accepted Answer

This report is called a flexible budget performance report because it compares actual performance to a budget that is flexible based on the actual level of activity. The report presents variances between actual and budgeted amounts, which helps management understand the reasons for deviations from the budgeted plan. The other answer choices are not accurate descriptions of this type of report.

An Internal Report That Helps Management Analyze the Difference Between