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Management Accounting_Week 12 Discussion

Management Accounting_Week 12 Discussion

Q Discuss the advantages of using Practical Standards over Ideal Standards.

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Practical standards can be regarded as standards which are challenging but attainable through workers that are motivated and efficient being used under normal conditions of working. Interruptions at work is permitted by them due to breakdowns of machine, period of rests for workers, and other considered normal conditions in a specific environment of work. Practical standards are set by majority of the firms using the system of standard costing instead of the ideal standards. The following advantages are offered by practical standards: