Which of the Following Statements Describes the Standard Expected of Experts

question 22

Multiple Choice

Which of the following statements describes the standard expected of experts?

• A) Inexperience excuses incompetence.
• B) The standard of an expert need be perfection.
• C) Require skills and abilities expected of an average person.
• D) Common practice always sets the appropriate standard.
• E) Must exercise skill with degree of care expected from a reasonable person in that profession.

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Definitions:

Volume Variance

Volume variance reflects the difference between the expected number of units produced or sold and the actual units produced or sold, impacting costs and revenue.

Budget Variance

The difference between the budgeted or planned amounts and the actual amounts incurred, used for financial analysis and control.

Denominator Level

In cost accounting, it’s the level of activity used to allocate fixed costs to products or services, often representing the production capacity.

Budget Variance

This is the difference between the budgeted or planned amount of expense or revenue, and the actual amount incurred or received.