Which two costs are compared in a performance report that uses activity flexible budgeting?
A) actual activity costs and budgeted overhead costs
B) budgeted costs for actual activity-usage levels and the actual activity costs
C) actual overhead costs and the budgeted activity costs for actual activity-usage levels
D) static activity budget costs and the budgeted activity costs for the actual activity-usage levels

Question

Quizplus · Accepted Answer

Activity flexible budgeting compares the budgeted costs for actual activity-usage levels with the actual activity costs, allowing for variance analysis and performance evaluation. The other options do not reflect the use of flexible budgeting for performance reporting.

Which Two Costs Are Compared in a Performance Report That