1. Responsibility accounting reports must be expanded to include what nonfinancial areas? Give some examples of nonfinancial measures.

2. What problems can result from the use of tight standards?

3. Identify possible causes for (1) a favorable materials price variance; (2) an unfavorable materials price variance; (3) a favorable materials quantity variance; (4) an unfavorable materials quantity variance.

4. What tasks are often assigned to the capital budgeting committee?