Match the items of List - II with List - I ; and choose the correct code :

List - I

(Critical Control Standards)

List - II

(Critical Points

(a) Physical standards (i) Material cost per unit

(b) Cost standards (ii) Labour hours per unit of output

(c) Revenue standards (iii) Timing of production

(d) Program standards (iv) Average sales per customer

Question

Question

This question was previously asked in

UGC Paper 2: Commerce July 2018

Answer 1

Critical Control Standards are different operating levels where materials and labour are used in the production of goods and services.

They can be units of output, man-hours, material, etc.

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Critical Control Standards	Their Critical Points
(a) Physical standards	They refer to the expression of standards in units or hours. i.e. Labour hours per unit of output.
(b) Cost standards	These are estimates of production cost as the actual cost cannot be known in advance. i.e. Material cost per unit.
(c) Revenue standards	It states that revenues must be recognized when realized and earned. i.e. Average sales per customer.
(d) Program standards	A set of rules that constrain the form of programs that are produced within an organization. i.e. Timing of production.

Therefore, from the above table, it is clear that option 1) is correct.

List - I (Critical Control Standards)	List - II (Critical Points
(a) Physical standards	(i) Material cost per unit
(b) Cost standards	(ii) Labour hours per unit of output
(c) Revenue standards	(iii) Timing of production
(d) Program standards	(iv) Average sales per customer