​Respond to the following questions in your own words.

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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)

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