ICAEW BIP · Chapter 9 · Question 1 of 13
A standard that assumes efficient but realistic operating conditions, with allowances for normal wastage, machine breakdowns and idle time, is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) an attainable standard
Explanation
An attainable standard can be achieved if operations are carried out efficiently, with allowances for normal losses and downtime. It is generally the most motivating. An ideal standard assumes perfect conditions with no allowances, and a basic standard is left unchanged over long periods to show trends.
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