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A small flock of birds becomes stranded on an isolated island during a hurricane.The birds successfully breed and spread across the island.Several decades later,a hurricane hits the island and randomly kills off most of the birds,including the only birds in the population that had black tails.Which one of the following processes is best illustrated in this example?
Theoretical Standards
These are rigorous, often idealized cost and efficiency standards based on perfect operating conditions, used for comparison and performance analysis.
Ideal Standards
Benchmarks used in managerial accounting that represent optimal levels of performance under perfect operating conditions.
Normal Standards
Benchmarks or norms established for a business process or operation that are considered to be a typical or expected level of performance.
Total Manufacturing Cost Variance
The difference between actual manufacturing costs and the standard costs of those manufactured items.
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