Question

An ideal standard

takes into account the ideal or proper time lost for employee breaks and machinery maintenance.

takes into account machinery maintenance time but does not take into account machinery breakdowns.

is the optimal level of operation under perfect conditions.

is more commonly used than other possible standards.

Answer 1

The correct answer is c) An ideal standard is the optimal level of operation under perfect conditions.

An ideal standard is a standard that can be achieved only with the highest efficiency and performance (usually under perfect conditions). Ideal standards (costs) are the standards which can be attained under the most favourable conditions possible. The level of performance under ideal standards would be achieved through the best possible combination of factors — the most favourable prices for materials and labour, highest output with best equipment and layout, and maximum efficiency in the utilisation of the production resources—in other words, maximum output at minimum cost. Such standards reflect only goals or targets without any hope of performance being currently achieved.

In the production process, lost time may occur for several reasons. The idle time is the difference between hours paid and hours worked. It takes into account the ideal or proper time lost for employee breaks and machinery maintenance.
Normal idle time is a part of idle time which is unavoidable and is considered as a normal occurrence in the factory. It takes into account machinery maintenance time but does not take into account machinery breakdowns.
Abnormal idle time is that idle time, the occurrence of which is not normal & because of some unexpected reasons such occurrence takes place. Thus idle time arising due to machinery breakdown, long time failure of power or load shedding, sudden strike or lockout are abnormal idle time.