Question

Standards differ from budgets in that

Select one:

a.budgets but not standards may be used in valuing inventories.

b.only budgets contribute to management planning and control.

c.budgets but not standards may be journalized and posted.

d.budgets are a total amount and standards are a unit amount.

Answer 1

Answer = D)d.budgets are a total amount and standards are a unit amount.

Explanation:

A budget is a company's projected expense, cost or revenue while standard usually shows projected amount per unit of the product. A standard may be regarded as the budgeted cost per unit of product. Some accountants use the terms budgeted cost and standard cost interchangeably. However, the term standard cost often refers to the cost of a single unit, whereas the term budgeted cost often refers to the cost, at standard, of the total number of budgeted units.