Standard Cost

Budgeted Cost.

ABC Company forecast that is would take $40 to make a chair, $30 for the labor and $10 for the wood. $10 is the standard price of the wood. During the year the price of the wood might go up or down. ABC may actually end up pay $9 or $11 or $12, but the standard price, the one they budgeted for was $10.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/standard-cost/