The Difference Between a Standard and a Budget Is That

question 105

Multiple Choice

The difference between a standard and a budget is that ________.

• A) a budget generally indicates a total amount while a standard indicates a per unit amount
• B) a standard acts as an overall guide for operating the business on a planned course of action
• C) a budget generally indicates a per unit amount while a standard indicates a total amount
• D) a standard projects future costs while a budget examines past costs

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Definitions:

Common Stockholders

Individuals or entities that own the common shares of a company, granting them rights to vote on corporate matters and receive dividends.

Gross Investment

The total amount of money spent on new capital assets, not accounting for depreciation, indicating the aggregate investment in an economy.

Net Investment

The aggregate expenditure of a business or economy on capital assets, after subtracting depreciation.

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critiques of capitalism and his development of the theory of communism.