Max Rady College of Medicine

Term: Standard Costs

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Glossary Definition

Last Updated: 2010-05-05


An average cost (versus micro-cost or user-specific cost) per service provided. Also described as a recommended (standard) cost for any given service (Jacobs et al., 1999). Standard costs are used in economic evaluation studies to ensure that the study results do not vary with costing methods used (i.e. everyone will be using the same standard costs).

In Finlayson et al. (2010), standard costing is done for hospital care, personal care homes, and home care where an average cost for services is determined based on total expenditures divided by the total units of service (e.g., days). This average cost is then applied to each individual case. For example, PCH costs for an individual are determined by the average cost per day multiplied by the number of days the person was a PCH resident.

Related concepts 

Related terms 


  • Finlayson G, Ekuma O, Yogendran M, Burland E, Forget E. The Additional Cost of Chronic Disease in Manitoba. Winnipeg, MB: Manitoba Centre for Health Policy, 2010. [Report] [Summary] (View)
  • Jacobs P, Shanahan M, Roos NP, Farnworth M. Cost List for Manitoba Health Services. Winnipeg, MB: Manitoba Centre for Health Policy and Evaluation, 1999. [Report] [Summary] (View)

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Manitoba Centre for Health Policy
Community Health Sciences, Max Rady College of Medicine,
Rady Faculty of Health Sciences,
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University of Manitoba
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