Question

An internal report that helps management analyze the difference between actual performance and budgeted performance based on the actual sales volume (or other level of activity) is called a(n):
a. sales budget performance report.
b. flexible budget performance report.
c. master budget performance report.
d. static budget performance report.
e. operating budget performance report.

Answer 1

Answer:

b.

Explanation:

Based on the information provided within the question it can be said that this is called a flexible budget performance report. Like mentioned in the question this is a report that compares the budgeted revenues with the actual revenues based on the volume of sales that the company has undertaken in a certain period of time. Every company uses this in order to make sure they are meeting sales goals and fix any problems that they may otherwise not know are there.