1. Compare and contrast the three types of responsibility centers (Profit Centers, Revenue Centers, Cost Centers) . What is the best way to evaluate a manager's performance in each type of center? What is the problem with using only financial measures of performance?

2a. What role do standard costs play in controlling the operations of a business? How are standard costs developed for direct materials, direct labor, and manufacturing overhead? Are there ever costs that we cant develop standards for related to manufacturing the goods?

2b. Thre types of Variance: Total Materials Variance, Total Labor Variance, and Total Overhead Variance; how can they be used, and why would a company want to use them anyway?

2c. In using variance analysis a business is trying to use a tool to assist in making management decisions. What are some common decision it can help with? What are some of the effects of this type of analysis?