​Respond to the following questions in your own words.

Respond to the following questions in your own words.

1. What is variance analysis? Define and give an example of each of the following variances: [1] price variance, [2] usage variance, [3] efficiency variance, [4] overhead variance, and [5] budget variance
2. What is ratio analysis? Discuss, with example, the following ratios: [1] efficiency ratio, [2] capacity ratio, [3] activity ratio.
3. What is cost internal control? What are some of the commonly used cost internal control measures? Discuss, with an example of each.
4. What is a flexible budget? Why is it important to have a flexible budget for government? Construct a flexible budget for a local water department. Make sure the budget includes information on the following: [a] direct labor, [b] direct materials, [c] variable overhead, [d] fixed overhead, and [e] total cost of supplying water for the budgeted year.

Writing Requirements

• APA format – include references
• 3 pages in length (excluding cover page, abstract, and reference list)