Standard vs Budgeted cost

Standard costs are used in ideal conditions and situations. These are predetermined or planned costs. Budgets are made and used in diverse conditions and situations. These are based on past experience.

Yoga Vishnu

CA Final

★ 11K+

14-Mar-22 10:47

Yes, Standard cost indicates what the cost should be(benchmark) Whereas budgeted cost(estimated cost) indicates what the cost will be (based on past experience and adjusting past figure )

Thread Starter

Mansha Tutlani

CA Final

★ 555

14-Mar-22 17:29

Standard Cost = Budget Cost for Actual Output (Actual Output * Standard Cost Per Unit) Budgeted Cost = Budget Cost for Budgeted Output (Budgeted Output * Standard Cost Per Unit)

Ravikumar Pandi

CA Inter

★ 2K+

15-Mar-22 11:49