Compost is good for dahlias. The flowering plant in question responds well to compost as soil amendment, fertilizer or mulch. It responds to well-drained soils, which compost promotes through its encouragement of air and water pore spaces and improvements in soil structure and texture.
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No,mushroom compost is not acceptable for dahlias. The flowering plants in question must not be cultivated in or fertilized with such high nitrogen fertilizers as mushroom compost. Failure to heed this proscription results in absent or small blooms, weak stems, and winter-rotted, winter-shriveled tubers.