Question: Standards can be either theoretical (impossible dream) or practical (attainable all the time or only part of the time). Theoretically either can be used as

Standards can be either theoretical ("impossible dream") or practical (attainable all the time or only part of the time). Theoretically either can be used as the framework for the budgeting process. Required: a) What is the major distinction, if any, between a standard amount and a budgeted amount? b) Which standard, theoretical or practical, provides the better benchmark for evaluating subsequent performance in a budgeting system? Explain.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!