Which one of the following is true concerning standard and budgeted costs?
A)Standard cost times the expected production level equals the budgeted cost.
B)Standard cost times the predetermined overhead rate equals the budgeted cost.
C)Total budgeted cost divided by actual units equals the standard cost.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Standard cost times the expected production level equals the budgeted cost. This is because standard costs are the estimated costs per unit of output, and when multiplied by the expected production level (how many units are planned to be produced), it results in the total budgeted cost for that production.

Which One of the Following Is True Concerning Standard and Budgeted