Which of the following statements is false?
A) A standard cost is more accurate than a budgeted cost.
B) A standard is a unit amount.
C) In concept standards and budgets are essentially the same.
D) The standard cost of a product is equivalent to the budgeted cost per unit of product.

Question

Quizplus · Accepted Answer

A standard cost is not more accurate than a budgeted cost. In fact, a standard cost is a predetermined cost that is based on an ideal level of efficiency and effectiveness, whereas a budgeted cost is an estimate of what the costs will be in the future based on expected activities and events. Therefore, a budgeted cost may be more accurate as it takes into account the actual expected activities and events.

Which of the Following Statements Is False