Which of the Following Statements Is INCORRECT

question 16

Multiple Choice

Which of the following statements is INCORRECT?

• A) Variances are often inter-related and must never be considered in isolation
• B) Standards are difficult to set
• C) A favourable sales variance is always good news
• D) Variances are useful for monthly reporting to various managers across the business

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Definitions:

Counterfactual Thinking

The psychological process of imagining alternative outcomes to events that have already occurred, often starting with "what if" questions.

Olympic Bronze Medalists

Athletes who have achieved third place in their respective events at the Olympic Games.

Overconfidence

A cognitive bias that causes a person to believe that they are more capable or knowledgeable than they actually are.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or at the end.