Standard costing is the practice of estimating the expense of a prduction process. It's a branch of cost accounting that's used by a manufacturer .These manufacturers will also be able to compare the standard cost to the actual costs. The term standard cost refers to a specific cost per unit. Budgeted cost refers to costs in total given a certain level of activity. These standard costs can then be used to establish a flexible budget based on a given level of activity. It is very useful to managers for the following reasons - managerial planning and decision making, Cost savings and reduction in production costs, and easy inventory measurement .

Which one is more important to managers?