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.