Attainable standard

Definition

An attainable standard is a realistic benchmark set for performance or costs that can be achieved under efficient operating conditions. It serves as a target that motivates employees while being feasible within the constraints of current resources and processes.

5 Must Know Facts For Your Next Test

1. Attainable standards are based on efficient operating conditions but allow for normal inefficiencies.
2. They differ from ideal standards, which assume perfect operating conditions with no inefficiencies or waste.
3. Setting attainable standards involves analyzing historical data, industry benchmarks, and current operational capabilities.
4. These standards help in budgeting and forecasting by providing realistic cost estimates.
5. Attainable standards can improve employee morale by setting achievable goals, thereby enhancing productivity.

Review Questions

• What distinguishes an attainable standard from an ideal standard?
• How can attainable standards impact employee motivation and productivity?
• What factors are considered when setting an attainable standard?

Related terms

Ideal Standard: A benchmark set under the assumption of perfect operating conditions with no room for inefficiencies.

Variance Analysis:

The process of comparing actual performance to standard performance to identify deviations.

Standard Costing:

A costing method that uses standard costs for materials, labor, and overheads to control expenses.