ECONOMICS

Detailed explanation-1: –In concept, standards and budgets are essentially the same.-The standard cost of a product is equivalent to the budgeted cost per unit of product.-A standard cost is more accurate than a budgeted cost.-A standard is a unit amount.

Detailed explanation-2: -What is the Difference between Standard Costs and Budgeted Costs? The term standard cost refers to a specific cost per unit. Budgeted cost refers to costs in total given a certain level of activity. These standard costs can then be used to establish a flexible budget based on a given level of activity.

Detailed explanation-3: -What is the difference between a budget and a standard? A budget is a total amount, while a standard expresses only a unit amount.

Detailed explanation-4: -The difference between actual cost and standard cost is called variance. A variance is unfavorable if actual cost is higher than standard cost. If actual cost is lower, the variance is favorable.

Detailed explanation-5: -The answer is c) Variances falling outside of an acceptable range of outcomes do not require investigation.