Answer (B) is correct.
Standard costs are predetermined, attainable unit costs. Standard cost
systems isolate deviations (variances) of actual from expected costs. One
advantage of standard costs is that they facilitate flexible budgeting.
Accordingly, standard and budgeted costs should not differ when
standards are currently attainable. However, in practice, budgeted
(estimated actual) costs may differ from standard costs when operating
conditions are not expected to reflect those anticipated when the
standards were developed.