-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.

---

Definitions:

Business Risk

Business risk refers to the potential for losses or less-than-expected profits resulting from factors that affect a company's operations or industry, excluding financial risk.

Demand Variability

Refers to the extent to which demand for a product or service can fluctuate over a certain period, affecting inventory levels, production planning, and supply chain management.

Operating Costs

Expenses associated with the day-to-day functions of a business, not including the production of goods or services.

Input Price Variability

Fluctuations in the cost of inputs, such as raw materials and labor, that can affect a business's operational expenses and profitability.