In the following list, identify whether the situation would indicate that a company should use standard costs and variance analysis or if the company should move away from standard costs and varianceanalysis.

Use Move away from standard costs Situation standard costs 1. There has been an increase in automation in the manufacturing process and a corresponding decrease in direct labor 2. Would like to increase employee motivation levels 3. Would like to facilitate the budgeting process 4. Will be implementing lean practices throughout the organization 5. Would like to use operational performance measures and visual management cues 6. Need timely reports about production results 7. Would like to simplify the bookkeeping process 8. Want benchmarks by which to judgo actual costs