Current standard
A current standard reflects the conditions and expectations relevant to the current period. It can help forecast present costs and compare activity on up-to-date assumptions. However, it may incorporate existing inefficiencies if it simply reproduces current practice, so its purpose differs from an ideal or efficient attainable benchmark. Updating the standard should be justified and disclosed in control reports rather than used to remove responsibility for poor results.
Worked example
A current material price standard is revised to $5 after an evidenced market price change, while the original $4 planning assumption remains visible for analysis.
Common mistake
Current does not automatically mean efficient, and changing a benchmark after the event can conceal a planning or operating problem.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Supporting | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Supporting | September 2026–June 2027 |
