Standard Costs Discussion

Week 7 Discussion Topic:

How do you think the idea of standard costs could be used in a service industry like a hospital, clinic, law office, insurance company, IT department, non-profit and so on (as it relates to your major)? As a manager of one of these organizations what changes do you think you could make as a result of reviewing the variances we learned this week (materials, labor, overhead)? Be sure to provide specific, relevant examples of the use and analysis of the variance results.