What is a basic standard?
A basic standard is a standard that is established for use over a long period of time and does not change from year to.
Basic standards are not commonly used for control purposes and are more appropriate for monitoring changes in efficiency and prices over time..
What is standard costing in simple words?
Standard costing is the practice of substituting an expected cost for an actual cost in the accounting records. Subsequently, variances are recorded to show the difference between the expected and actual costs.
What are normal standards?
Normal standards represent efficient levels of performance that are attainable under expected operating conditions. Properly set, normal standards should be rigorous but. attainable.
What are the 3 types of standards?
Following are different types of standards:Basic standards.Normal standards.Current standards.Attainable (expected) standards.Ideal (theoretical) standards.