Exercise 1-6.

Performance Reports [LO 1]

Which of the following statements related to performance reports is false?

a. Performance reports may provide a comparison of actual performance with planned performance.

b. Performance reports may provide a comparison of actual performance with performance in a prior period.

c. If actual costs exceed planned costs in a performance report, this clearly indicates managerial incompetence.

d. Performance reports are used to evaluate managers and the operations they control