Question

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.

Answer 1

A false statement in the given options is that a standard cost is more accurate than a budgeted cost.

Step-by-step explanation:

The false statement in the given options is A) A standard cost is more accurate than a budgeted cost. This statement is false because standard costs are predetermined costs that do not always reflect the actual cost of producing a product or providing a service. Budgeted costs, on the other hand, are estimates of expected costs based on anticipated activity levels. While both concepts involve predetermined costs, standard costs are not necessarily more accurate than budgeted costs.