Final answer:
The previous year's actual costs would not appear on a flexible budget performance report, as this report focuses on comparing current variable and mixed costs, adjusted to actual activity levels, for an accurate representation of current performance.
Step-by-step explanation:
On a flexible budget performance report, which is used in managerial accounting, D. The previous year's actual costs would not typically appear. A flexible budget report compares variable costs, mixed costs, and a flexibly adjusted budget based on actual activity levels, but does not traditionally include historical data from the previous year. Instead, it focuses on current performance and efficiency by adjusting budgeted costs to the actual level of activity, hence facilitating an 'apples to apples' comparison and better cost control.A flexible budget performance report compares the actual costs with the budgeted costs based on the actual level of activity. It helps in evaluating the performance of a business and identifying any variances or deviations from the budget. While variable costs, mixed costs, and a flexible budget adjusted to the actual level of activity would be included on the report, the previous year's actual costs are not relevant to the current budget and would not be included.
Fixed costs and variable costs are central to the budgeting process. Fixed costs do not change with output levels, whereas variable costs do. Both kinds of costs, along with mixed costs (having both fixed and variable components), are adjusted in a flexible budget to reflect the actual output, thereby creating an accurate portrayal of current performance against budget.