types of standards

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Meaning of attainable standards in management accounting.

Attainable standards also are known as expected or practical standards is a standard which can be attained if a standard unit of work is carried out efficiently, a machine properly operated or materials properly used. This standard is most widely used in practice. The attainable standard is based on an efficient operating condition though not a perfect condition.

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Types of standards in standard costing

In cost accounting, actual performance is compared with standard performance so that to establish the adverse or favorable variance from the standard set as a benchmark. Adverse variance (if it is significant) need to be investigated and corrected. Thus a company can develop a standard performance, and such standard can be one of the followings;

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What is risk of material misstatement?

What is ideal standard?

Ideal standard is one method of setting standard in standard costing so as to be used in variance analysis. It refers to result from perfect performance under perfect conditions. Ideal standards makes no provisions for normal losses, ineffciencies, wastage of labour and material or machine down time as result of this there is always are adverse variances when ideal standards … Read the rest

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 … Read the rest