Ideal standards are developed under the assumption that no obstacles to the production process will be encountered.

Question

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Ideal standards are based on the assumption that all production processes will run smoothly without encountering any delays, obstacles or hindrances. This means that there would be no abnormal conditions such as machine breakdowns, unexpected absenteeism, inventory shortages or quality issues. Ideal standards are viewed as the best-case scenario, whereas practical or attainable standards take into account the challenges that may arise during the production process.

Ideal Standards Are Developed Under the Assumption That No Obstacles