Which of the following statements characterizes a performance report prepared fo

Question

Which of the following statements characterizes a performance report prepared for use by a production line department head? a. The report should include information on all costs chargeable to the department, regardless of their origin or control. b. The report should be stated in dollars rather than in physical units so the department head knows the financial magnitude of any variances. c. The costs in the report should include only those controllable by the department head. d. It is more important that the report be precise than timely.

Explanation / Answer

The correct option is (c) i.e. The costs in the report should include only those controllable by the department head.

The costs in the report should include only those controllable by the department head characterizes a performance report prepared for use by a production line department head.

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