The Difference Between a Budget and a Standard Is That

question 210

Multiple Choice

The difference between a budget and a standard is that

• A) a budget expresses what costs were while a standard expresses what costs should be.
• B) a budget expresses management's plans while a standard reflects what actually happened.
• C) a budget expresses a total amount while a standard expresses a unit amount.
• D) standards are excluded from the cost accounting system whereas budgets are generally incorporated into the cost accounting system.

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Definitions:

Capital

Refers to wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.

Direct Investment

The acquisition of a controlling interest in a foreign business by making investments such as purchasing the company's stock directly.

Capital Commitments

The funds that a company plans to spend on long-term assets or projects over a period of time.

Ownership

The state or fact of possessing something, which can include both tangible assets (like property) and intangible assets (like intellectual property).