Question

What is a Performance Report? What would a performance report for a Profit Center show? What would a performance report for an Investment Center show?

Answer 1

A performance report addresses the performance of an individual, organization or a profit center or investment center. A performance report measures the actual performance with the budgeted or standard. It compares and reports the variances between actual and standard and denotes the nature of variance whether is it positive or negative.

Performance report of profit center denotes the performance on management and economic aspect. on the aspect of management performance, performance is measured on how well the manager is doing, it is used for planning and co-ordinating while economic performance is measured on net profit and contribution per profit center.

Responsibility center performance report contains items and infor­mation which are required by the concerned responsibility center manager and which are within his responsibility area