A performance report typically compares budgeted data to actual data.

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Managers use accounting information to make informed decisions about the financial health of their organization, monitor performance against budgeted goals, identify areas for improvement and growth, allocate resources efficiently, and report to stakeholders. Accounting information provides a valuable tool for managers to track and analyze financial data, a critical component of effective decision-making. Performance reports are just one example of accounting information that managers rely on to evaluate the success of their operations.

A Performance Report Typically Compares Budgeted Data to Actual Data