Unformatted text preview: evaluated if 300 customers are served? Similar scenarios exist with merchandising and manufacturing companies. To effectively evaluate the restaurant's performance in controlling costs, management must use a budget prepared for the actual level of activity. This does not mean management ignores differences in sales level, or customers eating in a restaurant, because those differences and the management actions that caused them need to be evaluated, too. The budget report for the Pickup Trucks Company is a static budget because the budgeted level of units is the same number of units as the original budget. It was not changed for the higher sales level....
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- Spring '09
- Different levels, Pickup Trucks Company