Question

to create a meaningful performance report: a actual costs are compared with the expected costs at the same level of activity. b expected costs of the static budget are compared with the expected costs of the flexible bud c actual costs are compared with the expected costs found in the static budget. d current actual costs are compared with the prior years actual costs.

Explanation:

A meaningful performance report compares actual costs with expected costs at the same level of activity to accurately assess performance. Comparing with static - budget expected costs (C) may not account for changes in activity levels. Comparing static and flexible budget expected costs (B) is more about budget - type comparison rather than performance reporting. Comparing current actual costs with prior - year actual costs (D) doesn't consider changes in activity or expectations for the current period.

Answer:

A. actual costs are compared with the expected costs at the same level of activity.