Smith and Wilson Co. prepared a 2015 budget for 160,000 units of product. Actual
ID: 2497532 • Letter: S
Question
Smith and Wilson Co. prepared a 2015 budget for 160,000 units of product. Actual production in 2015 was 175,000 units. To be most useful, what amounts should a performance report for this company compare?
The actual results for 175,000 units with a flexible budget for 175,000 units.
It doesn't matter. All of these choices are equally useful.
The actual results for 175,000 units with last year's actual results for 190,000 units.
The actual results for 175,000 units with the original budget for 160,000 units.
The actual results for 175,000 units with a flexible budget for 175,000 units.
It doesn't matter. All of these choices are equally useful.
The actual results for 175,000 units with last year's actual results for 190,000 units.
The actual results for 175,000 units with the original budget for 160,000 units.
Explanation / Answer
No of units Budgeted 160000 Actual Production 175000 The correct answer is D. The actual results for 175,000 units with the original budget for 160,000 units
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