Asked by Johnny Reyes on Jul 22, 2024
Verified
A budget performance report compares actual costs with the standard costs and reports differences for possible investigation.
Budget Performance
The comparison of actual financial outcomes against the planned or budgeted amounts.
Standard Costs
Predetermined costs assigned to goods and services, used as benchmarks for measuring performance and preparing budgets.
Actual Costs
The real expenses that a company incurs in producing goods or services.
- Understand the purpose and importance of budget performance reports in cost management.
Verified Answer
JV
Jonissa ValdesJul 28, 2024
Final Answer :
True
Explanation :
A budget performance report indeed compares actual costs to standard or budgeted costs, highlighting variances that may need further investigation to understand why they occurred.
Learning Objectives
- Understand the purpose and importance of budget performance reports in cost management.
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