ECONOMICS

Detailed explanation-1: -(ii) An ideal standard is one that could be achieved only under perfect operating conditions. It makes no allowances for events such as normal losses, machine breakdowns or idle time.

Detailed explanation-2: -An ideal standard is one which can be achieved only under perfect conditions. A quantity standard is the amount of input that should go into a single unit of the product. A price standard is the price that should be paid per output unit for the input.

Detailed explanation-3: -Ideal standards represent optimum levels of performance under perfect operating conditions. Normal standards represent efficient levels of performance that are attainable under expected operating conditions.

Detailed explanation-4: -Ideal standard costs: these standard costs represent perfect performance. They assume 100% efficiency, that there are no losses or idle time. They represent the minimum costs that are possible under the most efficient operating conditions.