Standards Which Represent Optimum Performance Under Perfect Operating Conditions Are

question 184

Short Answer

Standards which represent optimum performance under perfect operating conditions are called _______________ standards but most companies use _________________ standards which are rigorous but attainable.

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Definitions:

Manufacturing Sunk Cost

Costs that have already been incurred in the manufacturing process and cannot be recovered or altered by future decisions.

Capital Investment Analysis

The process of evaluating the potential returns and risks associated with investing in long-term assets to aid in decision making.

Manufacturing Productivity

A measure of the efficiency of a manufacturing process, typically calculated by dividing output by input.

Present Value

The immediate value of an upcoming lump sum or series of financial inflows, quantified by a specific rate of return.