Coronado Industries prepared a 2022 budget for 102,000 units of product. Actual production in 2022 was 220,000 units. To be most useful, what amounts should a performance report for this company compare?

A. The actual results for 220,000 units with the original budget for 102,000 units.
B. The actual results for 220,000 units with a new budget for 220,000 units.
C. The actual results for 220,000 units with last year's actual results for 223,400 units.
D. All of these comparisons are equally useful.

The most useful comparison for the performance report of Coronado Industries would depend on the specific goals and objectives of the company. Options A, B, and C all provide valuable insights into the company's performance, and the decision should be based on the information that is most relevant and meaningful for the company's management.

Explanation:

A performance report is a valuable tool for companies to assess their performance and identify any deviations from the original plan. In the case of Coronado Industries, they prepared a budget for 102,000 units of product but ended up producing 220,000 units. To determine the most useful comparison for the performance report, we need to consider the options provided:

Option A: Comparing the actual results for 220,000 units with the original budget for 102,000 units. This comparison would help identify any variations between the planned and actual results, highlighting the impact of the increased production on the company's performance.
Option B: Comparing the actual results for 220,000 units with a new budget for 220,000 units. This comparison would provide insights into how well the company performed against the revised budget, taking into account the increased production.
Option C: Comparing the actual results for 220,000 units with last year's actual results for 223,400 units. This comparison would allow the company to assess its performance relative to the previous year, considering the difference in production levels.
Option D: All of these comparisons are equally useful. This option suggests that all three comparisons would provide valuable information for evaluating the company's performance.

Ultimately, the choice of the most useful comparison for the performance report would depend on the specific goals and objectives of Coronado Industries. Each option offers unique insights into the company's performance, and the decision should be based on the information that is most relevant and meaningful for the company's management.

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