ECONOMICS

Detailed explanation-1: -A difference between standard costs used for cost control and the budgeted costs representing the same manufacturing effort can exist because standard costs represent what costs should be while budgeted costs represents expected actual costs.

Detailed explanation-2: -The Difference between Standard Costs and Budgeted Costs Answer: The term standard cost refers to a specific cost per unit. Budgeted cost refers to costs in total given a certain level of activity.

Detailed explanation-3: -The main difference is that standard costing is a unit concept in which standards are set for all cost elements, i.e., material, labour and overheads. Budgeting, on the other hand, is a total concept that is used for quantifying plans and coordinating the activities of the business.

Detailed explanation-4: -A variance is the difference between the actual cost incurred and the standard cost against which it is measured. A variance can also be used to measure the difference between actual and expected sales. Thus, variance analysis can be used to review the performance of both revenue and expenses.