What is basic standard?

In standard costing the basic standard is standard which is established for use over long period of time from which current standard can be developed. These standard remain constant for long period of time and hence they are also termed as long term standard.

They show trend over a period of time relating to material price, labor rates, effects of changing method and so forth. They serve at most as the statistical data and is not used to evaluate current efficiency or inefficiency.

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  1. Pingback: Meaning Of Attainable Standards In Management Accounting.

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