COST ACCOUNTING
STANDARD COSTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
The standard that requires maximum efficiency and perfect execution is...
|
Cost standard
|
|
Achievable standards
|
|
Currently attainable standard
|
|
ideal standard
|
Explanation:
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: -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-3: -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.
There is 1 question to complete.