Currently attainable standards may be used simultaneously for product costing, master budgets, and motivation. Throughout the illustrations and problems in this book, unless otherwise stated, currently attainable standards are assumed to be in use. If standards are not cunently attainable because they are perfection standards, the amount budgeted for financial (cash) planning purposes has to differ from the standard. Otherwise, projected income and cash disbursements will be forecast incorrectly. In such cases, perfection standards may be used for compiling performance reports, but expected variances are stipulated in the budget for cash pianning. For example, if unusually strict labor standards are used the standard cost per finished.
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