Standards based on the amount of input that should be used per unit of output are called
A) quantity standards.
B) price standards.
C) ideal standards.
D) currently attainable standards.
E) kaizen standards.

Question

Quizplus · Accepted Answer

Quantity standards are based on the amount of input that should be used per unit of output. They are used to determine the amount of raw materials, labor, and other resources needed to produce a certain quantity of output. Price standards are based on the cost of inputs and do not take into account the amount of input used per unit of output. Ideal standards are based on perfect conditions and are not attainable in practice. Currently attainable standards are based on past performance and may not be challenging enough to encourage improvement. Kaizen standards are continuous improvement standards that aim to improve efficiency and reduce waste over time.

Standards Based on the Amount of Input That Should Be