Ideal standards
A) are rigorous but attainable.
B) are the standards generally used in a master budget.
C) reflect optimal performance under perfect operating conditions.
D) will always motivate employees to achieve the maximum output.

Question

Quizplus · Accepted Answer

Ideal standards reflect the perfect or optimal performance under the best possible operating conditions, which may not always be attainable in reality. They provide a benchmark for measuring actual performance and identifying areas for improvement, but may not always be practical or achievable. Therefore, option A and D are incorrect. Option B is also incorrect as master budget standards may not necessarily be ideal standards.

Ideal Standards