Finley Company prepared a 2017 budget for 240,000 units of product. Actual produ
ID: 2466520 • Letter: F
Question
Finley Company prepared a 2017 budget for 240,000 units of product. Actual production in 2017 was 260,000 units. To be most useful, what amounts should a performance report for this company compare?
A : It doesn't matter. All of these choices are equally useful.
B : The actual results for 260,000 units with the original budget for 240,000 units.
C : The actual results for 260,000 units with a new budget for 260,000 units.
D : The actual results for 260,000 units with last year's actual results for 268,000 units.
Explanation / Answer
C.The actual budget of 26000 with the new budget of 26000. This would allow comparison of the expenses at uniform level and identify the variances