Use the Information for the Question(s) Below

question 48

Multiple Choice

Use the information for the question(s) below.

-If WiseGuy Inc. uses payback period rule to choose projects, which of the projects (Project A or Project B) will WiseGuy Inc. prefer?

• A) Project A
• B) Project B
• C) Project A and Project B have the same ranking.
• D) Cannot calculate a payback period without a discount rate.

---

Definitions:

Labor Cost Variance

The difference between the actual labor costs incurred and the standard labor costs for the actual production achieved; it is used for monitoring labor performance.