Which of the Following Statements Is Incorrect

question 31

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 is correct.

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Definitions:

Corn Producer

An entity or individual involved in the cultivation and production of corn crops.

Economic Profit

The profit a firm makes after subtracting both its explicit (out-of-pocket) and implicit (opportunity) costs.

Total Costs

The aggregate amount of all expenses associated with the production of a good or service, including both fixed and variable costs.

Implicit Costs

These are the costs of using resources owned by the company for production that aren't directly paid for or incurred as a clear expense.