Question

What is the best decision of a variance in reference to performance reports?

1) Amount of change in revenue over a fixed period of time
2) Amount of change in costs over a fixed period of time
3) Difference between a budgeted and actual figure
4) Difference between management and employee estimates of costs and revenue
5) Degree to which there is a difference between strategic and operational plans

Answer 1

The best decision of a variance in reference to performance reports is the difference between a budgeted and actual figure. This variance helps to assess the effectiveness of the budgeting process and identify areas where actual performance deviates from the planned performance.

Step-by-step explanation:

The best decision of a variance in reference to performance reports is the difference between a budgeted and actual figure. This variance helps to assess the effectiveness of the budgeting process and identify areas where actual performance deviates from the planned performance. By comparing the budgeted and actual figures, organizations can make informed decisions and take corrective actions to improve performance.