When Is a Labor Rate Variance Recorded in a Standard

question 38

Multiple Choice

When is a labor rate variance recorded in a standard costing system?

• A) At the time the labor costs are incurred
• B) At the time employees given rate increases
• C) After units of product are completed
• D) As part of the closing process

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Definitions:

Year 2

Refers to the second year of a particular time frame, often used in financial analysis to denote the second year of operations, investments, or accounting periods.

Price-Earnings Ratio

A valuation metric comparing the current share price of a company to its per-share earnings.

Year 2

A reference to the second year in a time series analysis or the second year of a company's operations or financial reporting.

Price-Earnings Ratio

A metric that compares the current price of a company's stock to its earnings per share.