ABSTRACT

At the end of this chapter you should:

Understand the purpose of a set of management control reports.

Know how to prepare a flexible budget and undertake a reasonably simple variance analysis.

Know the different variances that can lead to actual results differing from budgeted ones.

Understand the distinction among business-like units, fixed-resource units,and fixed-job units.

Know the distinction between information reports and performance reports.

Know the criteria for a good set of management control reports.