Correct Answer:
A. Rs. 200 favorable
LEV = (SH - AH) x SR = (100 - 90) x 20 = Rs. 200 favorable.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Actual hours are 90, standard hours allowed are 100 and the standard rate is Rs. 20. The labor efficiency variance is:
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The main purpose of depreciation is to:
A.
Show the market value of the asset
B.
Allocate the cost of a non-current asset over its useful life
C.
Set aside cash to replace the asset
D.
Increase profit
Correct answer is:
B. Allocate the cost of a non-current asset over its useful life
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Under variable (direct) costing, fixed manufacturing overhead is treated as:
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A product cost
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A period cost
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A direct material cost
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B. A period cost
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Profit with loss
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Assets with liabilities
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Tax collected with tax assessed
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Actual expenditure with the grants or appropriations authorized by the legislature
Correct answer is:
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Actual price is Rs. 12, standard price is Rs. 10 and 500 units were purchased. The material price variance is:
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Rs. 1,000 adverse
B.
Rs. 1,000 favorable
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Correct answer is:
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Which body issues the International Standards on Auditing (ISAs)?
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International Accounting Standards Board (IASB)
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International Auditing and Assurance Standards Board (IAASB)
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Replace professional judgment entirely
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