Behavioral implications of standard costing) 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 moti¬ vate employees

• the meaning of management by exception and how variance analysis of¬ ten 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 paper and an oral presentation based on your interview.

LO.1