A methodology for developing hospital standards is comprised of components having characteristics of several hospital systems including the cost accounting system, the budget process, and staffing assessments. The methodology is developed for labor, supply, and equipment standards. The cost accounting system requires standards for variable labor, fixed labor, variable supplies, fixed direct other supplies, and fixed direct equipment for cost allocation purposes. Outside of the cost accounting system, variable labor and fixed labor standards are required for determining workload assessment for staffing studies and evaluation of hospital projects. Both perspectives of standards requirements are incorporated into this methodology for developing hospital standards. A consistent approach for developing standards establishes a foundation for a Standards Maintenance System and the basis for analysis. Because standards are systematically developed according to this methodology, maintenance of standards is more efficient and routine. When standards are current and accurate, integrity of standards is maintained and system outputs derived from standards are meaningful and easily interpreted. This methodology also permits standards information to be instrumental in analysis of labor, relationships among standards, and potential process improvements. The use of standards in a Standards Maintenance System becomes a tool for analysis across departments within the hospital and for eventual comparative analyses across hospitals. / Master of Science