Which of the Following Statements Is Incorrect

question 48

Multiple Choice

Which of the following statements is incorrect?

• A) In deciding whether to investigate a variance, managers should not consider the materiality of the variance.
• B) A material variance is one that will influence stockholders' investment decisions.
• C) The primary advantage of a standard cost system is to price products consistently.
• D) None of these answers are correct.

---

Definitions:

Compound

A chemical entity that is formed by the combination of two or more elements in a specific proportion.

Functional Group

A specific group of atoms within a molecule that is responsible for the characteristic chemical reactions of that molecule.

R-OH

This is a general formula representing alcohols where R represents the alkyl group and -OH represents the hydroxyl functional group.

Alcohol

Any organic compound where the hydroxyl functional group (–OH) is bound to a carbon atom.