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.

Question

Quizplus · Accepted Answer

Managerial judgment,developed through experience,plays a significant role in deciding which variances to investigate.Managers consider the materiality of a variance,the frequency with which it occurs,their capacity to control the variance,and the characteristics of the items behind the variance.A material variance is one that could influence management decisions.The primary advantage of a standard cost system is efficient use of management talent to control costs.

Which of the Following Statements Is Incorrect