What are the 3 types of standards?

Normal standards. Current standards. Attainable (expected) standards.

What is attainable standard in standard costing?

Currently attainable standard costs: these are standard costs that should be attainable under efficient operating conditions. These standards incorporate the possibility of machine breakdowns, normal wastage and lost time. Currently attainable standards should be tough but realistic.

What are ideal standards?

Ideal standards are those benchmarks that are set assuming perfect working conditions and without accounting for any possibility of wastages or inefficiencies. Practical standards are those benchmarks that are set assuming normal working conditions after factoring in expected wastages/reasonable working efficiency.

What is the difference between and Ideal Standard and a normal standard which should be used and why?

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.

What is attainable standard?

Currently attainable standards are standard costs that are achievable by a specified level of effort and allow for normal spoilage, waste, and nonproductive time.

What is the difference between practical and ideal standards?

What should be achieved with normal workers in a normal setting is called Ideal Standard?

“Ideal standards-Standards that can be achieved only under perfect operating conditions, such as no idle time, no machine breakdowns, and no materials spoilage; also called theoretical standards.

Which one of the following is a disadvantage of ideal standards?

Ideal standards has the following disadvantages: The ideal standards usually seem impossible to achieve and therefore may discourage even the most diligent and highly motivated workers. The occurrence of large variances from ideal standards is normal which reduces the effectiveness of “manage by exception”.

Is normal costing and standard costing the same?

The key difference between normal costing and standard costing is that normal costing employs actual costs for materials and direct labor, while standard costing uses predetermined costs for both of these items.

What are standards explain what is the difference between ideal and practical standards Why would a company use ideal standards?