The difference between standard costs and budgeted costs is that standard cost
A)refers to a single unit while budgeted costs refer to the cost, at standard, for the total number of budgeted units.
B)is calculated under ideal conditions, while budgeted costs are calculated for attainable conditions.
C)is calculated for raw material while budgeted costs are calculated for direct labor.
D)is part of the management accounting system, while budgets are part of the financial accounting system.

Question

Quizplus · Accepted Answer

Standard cost refers to the cost of a single unit, while budgeted costs refer to the cost at standard for the total number of budgeted units. Standard costs are used to measure actual performance, while budgeted costs are used to plan and control costs in advance.

The Difference Between Standard Costs and Budgeted Costs Is That