Which of the Following Statements Is Incorrect?
A) the Cost

question 43

Multiple Choice

$$\begin{array} { l r c } \text { Item to Classify } & \text { Starddard } & \text { Actual } \\\text { Sales Reveruse } & 820,000 & 835,000 \\\text { Wages } & 125,000 & 128,000 \\\text { S\&A Expenses } & 400,000 & 408,000 \\\text { Cost of Goods Sold } & 608,000 & 600,000\end{array}$$ Which of the following statements is incorrect?

• A) The cost of goods sold variance is favorable.
• B) The S&A expense variance is favorable.
• C) The sales revenue variance is favorable.
• D) The wage expense variance is unfavorable.

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Definitions:

Self-Serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, leading individuals to make illogical decisions.

Overconfidence Effect

A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.