A flexible budget performance report compares the differences between:
A) Actual performance and budgeted performance based on actual sales volume.
B) Actual performance over several periods.
C) Budgeted performance over several periods.
D) Actual performance and budgeted performance based on budgeted sales volume.
E) Actual performance and standard costs at the budgeted sales volume.

Question

Quizplus · Accepted Answer

A flexible budget adjusts for changes in sales volume, so a flexible budget performance report would compare actual performance to budgeted performance based on actual sales volume. This allows for a more accurate evaluation of performance, as it takes into account changes in volume that may have affected costs and revenues.

A Flexible Budget Performance Report Compares the Differences Between