The difference between a budget and a standard is that
A) a budget expresses what costs were while a standard expresses what costs should be.
B) a budget expresses management's plans while a standard reflects what actually happened.
C) a budget expresses a total amount while a standard expresses a unit amount.
D) standards are excluded from the cost accounting system whereas budgets are generally incorporated into the cost accounting system.

Question

Quizplus · Accepted Answer

A budget typically outlines the overall financial plans of a business, including total revenues and expenditures for a specific period. On the other hand, a standard refers to a cost or revenue that should be achieved per unit; it is a benchmark or a specific criterion against which actual results can be measured. This distinction highlights that budgets deal with total amounts, while standards focus on specific, per-unit amounts.

The Difference Between a Budget and a Standard Is That