-Refer to Figure 11-2

question 22

Multiple Choice

-Refer to Figure 11-2. What is the flexible budget variance for July?

• A) $12,000 U
• B) $12,000 F
• C) $29,000 U
• D) $29,000 F
• E) None of these.

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Definitions:

Accounting Cycle

The process of recording, classifying, summarizing, and interpreting financial transactions over a fiscal period, culminating in the preparation of financial statements.

Purchasing Cycle

A series of steps that a company goes through to acquire goods or services, from the identification of a need to the approval of the invoice for payment.

Operating Cycle

The period of time it takes for a business to acquire inventory, sell it, and convert the sale into cash.