Which of the following statements is INCORRECT?
A) Variances are often inter-related and must never be considered in isolation
B) Standards are difficult to set
C) A favourable sales variance is always good news
D) Variances are useful for monthly reporting to various managers across the business

Question

Quizplus · Accepted Answer

Although a favourable sales variance indicates good news, it still needs to be investigated. How has it arisen? Is it more sales volume of a product, but possibly at a lower margin; or selling each product for more money? What are the cost implications of the additional sales?

Which of the Following Statements Is INCORRECT