If the Price Level in the Year 2000 Is 100

question 120

Multiple Choice

If the price level in the year 2000 is 100, and the price level in the year 2001 is 110, what is the inflation rate in 2001?

• A) 100 percent
• B) 110 percent
• C) 10 percent
• D) 9 percent

---

Definitions:

Labor Rate Variance

A measure used in cost accounting to analyze the difference between the actual labor cost incurred and the standard labor cost for the actual labor hours worked.

Variable Overhead Efficiency Variance

Refers to the difference between the standard cost of variable overheads for the actual production level and the actual variable overheads incurred.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost, indicating how well a company has controlled its labor costs.

Labor Efficiency Variance

The difference between the actual hours worked by employees to produce goods and the expected hours, used to measure workforce efficiency.