Ideal standards are synonymous with favorable variances, while attainable standards are synonymous with unfavorable variances.

Question

Quizplus · Accepted Answer

This statement is incorrect. Ideal standards are often more stringent than attainable standards, hence unfavorable variances are more likely to occur with ideal standards. On the other hand, attainable standards are set to be achievable by the company and favourable variances are more likely to be achieved with those standards.

Ideal Standards Are Synonymous with Favorable Variances, While Attainable Standards