Standards: Standards are the pre-determined values which are decided by the company as to attain the actual values similar to them. This is done to achieve the determined objective. Budget: Budget is a statement which shows the estimated values which are expected to incur in the future accounting period. This estimation helps to analyze the methods and the ways of working in an organization. To explain: The similarities and differences between standards and budgets.

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Chapter 25, Problem 2Q

a.

To determine

Standards: Standards are the pre-determined values which are decided by the company as to attain the actual values similar to them. This is done to achieve the determined objective.

Budget: Budget is a statement which shows the estimated values which are expected to incur in the future accounting period. This estimation helps to analyze the methods and the ways of working in an organization.

To explain: The similarities and differences between standards and budgets.

(b)

To determine

To explain: The contrast in accounting for standards and budgets.

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