All charges for services computed using budgeted rather than actual rates should be removed from an operating department's performance report.

Operating Department

A unit or division within an organization that is directly involved in performing the primary business activities of the company.

Budgeted Rates

Projected costs or expenses associated with specific activities or operations, used for budgeting and planning purposes.

Actual Rates

The current, real-time rates or prices for services, goods, or financial products in the market.