Economics · Cost Accounting

Consider the following strategic differences between Standard Costing and Budgetary Control: Statement 1: Budgetary Control primarily focuses on the profitability of the organization as a whole, whereas Standard Costing focuses on the efficiency of individual cost elements. Statement 2: The Standard Cost of a product serves as the foundation for setting the Budgeted Cost, meaning Standard Costing is a prerequisite for effective Budgetary Control. Statement 3: In both systems, a Variance is the difference between an actual result and the planned result, used for performance appraisal. Statement 4: Standard Costing is a pervasive system covering all business activities, while Budgetary Control is limited only to the production department. Which of the above statements are correct?