Asked by Kristopher Curry on Jun 03, 2024
Verified
A fixed budget performance report never provides useful information for evaluating variances.
Fixed Budget
A budget that remains unchanged over the budget period regardless of changes in the level of activity.
Variances
Variances refer to the differences between planned, budgeted, or standard costs and the actual costs incurred, indicating deviations in financial and operational performance.
- Learn to differentiate between flexible and fixed budgets, recognizing their roles in the context of financial planning.
Verified Answer
CM
Capucine MorelleJun 06, 2024
Final Answer :
False
Explanation :
A fixed budget performance report compares actual results against the budgeted amounts, allowing for the identification of variances. These variances can provide useful information for evaluating performance and identifying areas for improvement or adjustment in future budgets.
Learning Objectives
- Learn to differentiate between flexible and fixed budgets, recognizing their roles in the context of financial planning.