Which of the Following Statements About Materiality Is Not Correct

question 10

Multiple Choice

Which of the following statements about materiality is not correct?

• A)An item must make a difference or it need not be disclosed.
• B)Materiality is a matter of relative size or importance.
• C)An item is material if its inclusion or omission would influence or change the judgement of a reasonable person.
• D)All of these are correct statements about materiality.

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Definitions:

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees and staff.

Distribution

The process of taking goods from production to consumption.

Production to Consumption

The process that encompasses all stages from the creation of goods and services to their final use by consumers.

Standardization

The process of implementing and developing technical standards to ensure consistency and compatibility of products and services.