Question

A standard differs from a budget because a standard is a unit amount. none of these; a standard does not differ from a budget. is a predetermined cost. contributes to management planning and control.

Answer 1

Standard cost is the amount management thinks should be incurred to produce a good or service. A standard differs from a budget because a standard is a unit amount. A budget on the other hand expresses a total amount. Using standard costs provides a basis for evaluating cost control.