Question

Which of the following would be an example of a performance report? Multiple Choice A production report showing budgeted and actual production for the past month. An income statement reporting actual results for the past month. An income statement showing the amounts budgeted for the past month. A balance sheet showing the actual financial position at the end of the past month.

Answer 1

Correct answer----------------A production report showing budgeted and actual production for the past month.

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A production report showing budgeted and actual production for the past month is generally made for the internal use by the production manager to show his performance in the past month/year /quarter. This production report tells the actual and budgetd results and the variance between them. The variance are favorable if actual cost is less than budgeted cost and it is unfavorable if actual cost is more than budgeted cost.