ACCA PM · Chapter 12 · Question 1 of 12
Which type of standard assumes perfect operating conditions, with no allowance for wastage, idle time or machine breakdowns?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Ideal standard
Explanation
An ideal standard can only be achieved under perfect conditions and makes no allowance for normal losses or inefficiencies. Attainable standards allow for normal losses, current standards reflect present conditions, and basic standards are left unchanged over long periods for trend analysis.
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