Question

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

Answer 1

Answer:

The correct answer is the last option: a budget expresses a total amount, while a standard expresses a unit amount.

Explanation:

On the one hand, a budget is the name given, in the business field to an estimation done by the managers of the company that shows how much revenue and expenses the managers are expecting that will happen over a specified future period of time and that is normally compared to the reality and the basics of the process of the company while the production is on going.

On the other hand, a standard when it comes to terms of business refers more specifically to units because an standard is something that the managers of the company are expecting to acquire and to achieve over a certain period of time always focusing in the unit of production, not in the total amount.