Ans. Standard Hour
Production
may be expressed in different units of measurement such as kilos, tones, liters,
numbers etc. When a concern produces different types of products, the
production will be expressed in different units. It is difficult to aggregate
the production which is expressed in different units. To overcome this
difficulty, the production is to be expressed in a common measure known as
‘Standard Hour’. The standard hour is the quantity of output which should be
produced in one hour. A standard hour may be as “A hypothetical hour which
represents the amounts of work which should be performed in one hour under
stated conditions.” A measure of standard hour is useful for the purpose of
comparison of performance of one department to another. It is also useful to
compute efficiency and activity ratios.
For
example if 20 units of product A are produced in 2 hour, and 40 units of
product B are produced in 5 hours, the standard hours represent 10 units of
product A [20 units/ 2 hours] and 8 units of product B [40 units/5 hrs].
Therefore, standard 2 hrs 5 hrs hour is the quantity of production of a given
product for one clock hour.
No comments:
Post a Comment