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 variance analysis.

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