Question

Distinguish among a​ budget, a performance​ report, and a variance. A. A budget measures the differences between a performance report and a​ variance; a performance report compares actual results with the​ budget; and a variance is a quantitative expression of a plan of action. B. A budget compares actual results with the performance​ report; a performance report is a quantitative expression of a plan of​ action; and a variance measures the differences between budget and actual. C. A budget is a quantitative expression of a plan of​ action; a performance report compares actual results with the​ budget; and a variance measures the differences between budget and actual. D. A budget compares the performance report with​ variances; a performance report measures the differences between budget and​ actual; and a variance is a quantitative expression of a plan of action.

Answer 1

Answer:

C. A budget is a quantitative expression of a plan of​ action; a performance report compares actual results with the​ budget; and a variance measures the differences between budget and actual.

Explanation:

Budget is the initial step of any cost project, as this is the planned expenditure in details, for the upcoming period.

Performance report is the report prepared after actual costs and revenues are expense and earn respectively. This report compares the budgeted actions with the actual performance.

Variance is the unit of difference in budgeted and actual performance, only with the help of variance it is calculated as to what is the exact difference between the planned and actual performance.

Therefore, Statement C is correct.