(Behavioral implications of standard costing; research) Contact a local company that uses a standard cost system. Make an appointment with a manager at that company to interview her or him on the following issues:
- the characteristics that should be present in a standard cost system to encourage positive employee motivation
- how a standard cost system should be implemented to positively motivate employees
- the meaning of management by exception and how variance analysis often results in the use of this concept
- how employee behavior could be adversely affected when “actual to standard” comparisons are used as the basis for performance evaluation
Prepare a short report and an oral presentation based on your interview.