Q1112
Three types of standards are . . . . . . . .
A.
Current standard, basic standard and normal standard
AnswerB.
Currency standard, basel standard and actual standard
C.
Actual standard, estimated standard and expected standard
D.
Expected standard, ideal standard and current standard
Answer: Option A
Solution
Answer: Option A
Solution:
Current Standard:It represents the standards set for the current period based on current conditions. These are practical and realistic, reflecting what can actually be achieved under existing circumstances.
Basic Standard:
A long-term standard that remains unchanged over a period of time. It is used mainly to measure trends over several periods and to analyze variances historically.
Normal Standard:
This standard represents the level of performance which can be achieved under normal operating conditions, considering average past performance and expected future efficiencies.
Incorrect Options:
- Option B refers to unrelated or nonexistent types of standards.
- Option C mentions "actual" and "estimated" standards, which are not recognized categories in cost accounting standards.
- Option D combines “expected” and “ideal” standards inaccurately; while ideal standards exist, they are not part of the classic three types (current, basic, normal).