Correct Answer:
C. Rs. 200 adverse
LRV = (AR - SR) x AH = (22 - 20) x 100 = Rs. 200 adverse.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Actual labor rate is Rs. 22 per hour, standard rate is Rs. 20 and actual hours are 100. The labor rate variance is:
Related MCQs
Standard costing is a technique in which:
A.
Only actual costs are recorded
B.
Costs are ignored
C.
Selling prices are fixed by law
D.
Predetermined costs are compared with actual costs to compute variances
Correct answer is:
D. Predetermined costs are compared with actual costs to compute variances
Do you agree with this answer?
Target costing computes the target cost as:
A.
Actual cost plus markup
B.
Target selling price minus desired profit
C.
Last year's cost plus inflation
D.
Variable cost only
Correct answer is:
B. Target selling price minus desired profit
Do you agree with this answer?
Auditor independence consists of:
A.
Independence of audit fees only
B.
Independence from the auditing standards
C.
Independence of mind and independence in appearance
D.
Independence from the audit working papers
Correct answer is:
C. Independence of mind and independence in appearance
Do you agree with this answer?
A tax expenditure is:
A.
Money spent on collecting taxes
B.
Salaries of tax officers
C.
Tax refunds paid by mistake
D.
Revenue forgone by government through exemptions, deductions and concessions
Correct answer is:
D. Revenue forgone by government through exemptions, deductions and concessions
Do you agree with this answer?
A trial balance is prepared mainly to:
A.
Prove that the accounts are free from all errors
B.
Calculate the tax payable
C.
Replace the balance sheet
D.
Check the arithmetical accuracy of the ledger by comparing total debit and credit balances
Correct answer is:
D. Check the arithmetical accuracy of the ledger by comparing total debit and credit balances
Do you agree with this answer?
The ability-to-pay principle of taxation says that:
A.
People should pay tax according to benefits received
B.
Everyone pays the same amount
C.
People with higher income or wealth should pay more tax
D.
Only businesses pay tax
Correct answer is:
C. People with higher income or wealth should pay more tax
Do you agree with this answer?
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