Knowledge Check: The difference between a budget and a standard is that Standards refer to a company's projected revenues, costs, or expenses Standard expresses what costs should be while budget expresses what costs are A budget expresses a total amount, while a standard expresses a unit amount Standards are used in cost accounting system, whereas budgets are not Knowledge Check 01 Which of the following statements correctly describes a favorable direct materials quantity variance? The once paid for purchasing direct materials was more than the standard rate. The quantity of direct materials used in production was less than the standard requirement The quantity of direct materials purchased was more than the standard requirement The price paid for purchasing direct materials was less than the standard rate