Differences in expectation levels lead to two basic types of standards in a standard cost system:
A) Ideal standards and real standards.
B) Ideal standards and currently attainable standards.
C) Normal standards and conceptual standards.
D) Attainable standards and real standards.
E) Current standards and future standards.

Question

Quizplus · Accepted Answer

Ideal standards are based on perfect conditions and are not realistically achievable, while currently attainable standards are based on current conditions and take into account normal levels of waste, inefficiency, and other factors. Normal or average standards are not typically used in standard cost systems, and conceptual standards are not a recognized category of standards in this context. Attainable and real standards are similar concepts and are not differentiated by differences in expectations. Current and future standards are not recognized categories of standards in this context either.

Differences in Expectation Levels Lead to Two Basic Types of Standards