Economics · Standard Costing
Consider the following statements regarding types of standards used in Standard Costing: Statement I: An Ideal Standard represents the cost achievable under current and anticipated efficient working conditions and is easily attainable. Statement II: A Normal Standard is based on long-term average cost, reflecting an entire business cycle spanning multiple years, and is primarily useful for long-term planning. Which option correctly assesses the above statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both Statement I and Statement II are incorrect.
- 2Both Statement I and Statement II are correct.
- 3Only Statement II is correct.✓
- 4Only Statement I is correct.
Correct answer
Only Statement II is correct.
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