Current standard
A current standard is a cost standard set to reflect this period's actual prices and efficiency levels, updated as conditions change, unlike an ideal, attainable, or long-unchanged basic standard.
See it move
A confectionery producer's current standard cocoa price is €4.20 per kilogram this quarter, matching the price it actually pays. Its basic standard, fixed five years ago, is still €3.50 per kilogram. At 2.5 kilograms per unit, the current standard gives a material cost of €10.50 per unit against €8.75 under the old basic standard, a €1.75 gap that is pure price inflation, not a change in efficiency.
Check yourself
A cocoa processor revises its standard cocoa bean price to €2,850 per tonne every quarter to match the price the business is currently paying in the market, while keeping the standard usage per unit of output unchanged. This price standard is best described as which type of standard?