Standards are set for units; budgets are expressed in total pounds

Question

Quizplus · Accepted Answer

Standards provide a benchmark for measuring performance and facilitate decision-making. Budgets, on the other hand, provide a plan for allocating resources and achieving financial goals. However, potential problems with using standard costs include inaccurate or outdated standards, overreliance on standards, and not adjusting for external factors that may affect costs.

Standards Are Set for Units; Budgets Are Expressed in Total