Basic or Bogey standards:

These standards are used only when they are likely to
remain constant or unaltered over a long period. According to this standard, a base year is
chosen for comparison purposes in the same way as statisticians use price indices. Since
basic standards do not represent what should be attained in the present period, current
standards should also be prepared if basic standards are used. Basic standards are,
however, well suited to businesses having a small range of products and long production runs.
Basic standards are set, on a long-term basis and are seldom revised. When basic standards
are in use, variances are not calculated as the difference between standard and actual cost.
Instead, the actual cost is expressed as a percentage of basic cost.