Of the Following,which Is the Least Important Characteristic of a Useful

question 12

Multiple Choice

Of the following,which is the least important characteristic of a useful theory?

• A) It is simple.
• B) It is precise (for example,a mathematical model).
• C) It is testable.
• D) It is later demonstrated to be correct.

Understand and analyze the flow of variances into financial statements at the end of the fiscal year.

Understand the concept and calculation of direct materials price variance.

Understand the concept and calculation of direct materials quantity variance.

Recognize different types of standards (ideal, normal, currently attainable).

---

Definitions:

Normal Good

A product or service for which demand increases as consumer income increases, and vice versa, demonstrating a direct relationship between income and demand.

Income

The financial gain earned by an individual or entity, typically through wages, investments, or other forms of revenue.

Demand

The desire to own goods or services combined with the ability and willingness to pay for them.

Demand Curve

A curve on a graph that exhibits the quantity of a good that consumers are prepared to buy at different prices.