Summary Week 2 Assignment: Using Accounting Information for Decision Making— Performance Report

WMBA 6050 Week 2 AssignmentWeek 2 Assignment: Using Accounting Information for Decision Making— Performance Report and the Balanced ScorecardWalden UniversityWMBA 6050: Accounting for Management Decision MakingAnalyzing the Performance Report—Preparing a Flexible Budget It is crucial to comprehend why the original report was inaccurate while examining it. The original report needed to take into account how the price might vary depending on how many assemblies were made. An adverse variance resulted from the static budget's values being much lower than the actual costs. A static budget prepares numbers for a single output level throughout a specified time period, (Franklin et al., 2019). Budgeted costs, on the other hand, should adjust to shifting production and sales, (Franklin et al., 2019). For example, comparing actual costs would not give a true picture of how effectively the company achieves its objectives if sales fall short of what was budgeted. The flexible budget might demonstrate how the costs of