.1em;”>Question 1List and describe four ways in which management accounting differs from financial accounting. Be specific in your response.Question 2List and describe four potential problems with budgeting. Be specific in your response.Question 3The following information pertains to the Nicholas Corporation:Expected production (units)61,000Standard DML hours per unit5Standard DML rate per hour$22Standard pounds of DM usage per unit4Standard DM price per pound$8Actual units produced58,000Actual DML hours worked301,600Actual cost of DML$6,484,400Pounds of DM purchased245,000Total cost of DM purchased$2,021,250Pounds of DM used228,000a) Calculate the following variances:Direct manufacturing labor rate varianceDirect manufacturing labor usage varianceDirect materials price varianceDirect materials usage varianceb) Explain what each of the calculated variances imply about Nicholasâ€™s operations. Make sure you give a specific possible reason for the calculated variance and that your possible reasons do not contradict each other.Direct manufacturing labor rate varianceDirect manufacturing labor usage varianceDirect materials price varianceDirect materials usage varianceQuestion 4How can a financial analyst use a firmâ€™s days sales in inventory ratio, book value per share, interest coverage ratio, and asset turnover ratio to assess a firm? As part of your answer, you should say what it tells us about the firm. Be specific in your response.Question 5In analyzing a firmâ€™s vertical / horizontal income statement over a four-year period, you observe that the firmâ€™s gross margin percentage has steadily increased. Over the same period, its operating income margin percentage has steadily decreased. How would you interpret this? Be specific in your response.