A. Standard costs are used for budgeting and planning purposes, not inventory valuation.
B. Standard costs are reviewed periodically to account for any market changes. Annually during budget time is frequently the review period for standard costs.
C. This is the correct answer because it is not a correct statement. The statement is actually flipped around. Standards are stated on a per unit basis, while budgeted figures are stated in total.
D. These studies are often used to determine how long it usually takes to perform a given task. That "usual time" becomes the standard.
