Which of the Following Is True of Reference Groups

question 36

Multiple Choice

Which of the following is true of reference groups?

• A) Reference groups are not "groups" in the sense that they involve interaction.
• B) A well-adjusted person only has one reference group at a time.
• C) The influence of a given reference group can be positive or negative, but not both.
• D) Reference groups only influence our behavior during childhood.

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Definitions:

Revenue Price Variance

The difference between the actual revenue generated by selling a product at its current price and the expected revenue at a predetermined price.

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of materials and the standard cost, multiplied by the quantity of materials purchased.

Standard Price

A predetermined cost that management expects to pay under normal conditions for a specific quantity of goods or services.

Unfavorable Staff Time Variance

A discrepancy where the actual hours worked by employees exceed the planned or standard hours, typically leading to higher costs.