Question

The difference between a budget and a standard is that:_________.

Answer 1

Answer:

The answer is A. Standards refer to a company's projected revenues, costs, or expenses

Explanation:

The explanation is the following:

A budget refers to a department's or a company's projected revenues, costs, or expenses, while on the other hand A standard usually refers to a projected amount per unit of product, per unit of input (such as direct materials, factory overhead), or per unit of output.

Standard costing is intensive in appli­cation as it calls for detailed analysis of variances.

In standard costing, variances are usu­ally revealed through accounts.

Standard costs represent realistic yardsticks and are, therefore, more useful for controlling and reducing costs.

Answer 2

Answer:

The correct answer is letter "C": A budget expresses a total amount, while a standard expresses a unit amount .

Explanation:

Budgets are estimations of the expenses an organization may incur as a result of developing projects or its regular operations. Budgets are projected at the beginning of the operations of the entity to forecasts its expenditures throughout a given period. Budgets aim to provide an idea of the total amount that could be spent during that time.

Standards are guidelines set by institutions including the minimum quantities that should be achieved over different operations including production and quality. Standards are established in units so the performance of an organization can be measured based on them.