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:

Kilowatt/Hour

A unit of energy equivalent to one kilowatt of power expended for one hour.

Production Workers

Employees directly involved in the manufacturing process, responsible for converting raw materials into finished goods.

Merchandising Company

A business that purchases goods wholesale and resells them at retail, making a profit on the markup.

Comparative Income Statement

A financial statement showing the revenues, expenses, and net income of a company over multiple periods, facilitating analysis of financial performance over time.