What Does a Flexible Budget Performance Report Do

Definition: A flexible budget performance report is a management report that compares the actual revenues and costs for a period with the budgeted revenues and costs based on the actual sales volume.

What is the purpose of budget performance reports?

The Profit & Loss by Budget Performance Report lines up your forecasted budget alongside your actual numbers over a specific financial period. This allows you to easily see what ‘budget items’ went as expected, which outperformed expectations, and which did not meet expectations.

What does a flexible budget performance report do that is a simple comparison of budgeted to actual results does not do?

the flexible budget performance report clearly separates the differences between the actual results and the static planning budget that are due to changes in prices and the effectiveness with which resources are managed.