Kiva's Innovation in Microlending Was to Allow Anyone to Loan

question 29

True/False

Kiva's innovation in microlending was to allow anyone to loan small amounts of money to entrepreneurs in developing countries.

---

Definitions:

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of goods sold.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overhead.

Units Manufactured

The total quantity of products completed and ready for sale or use at the end of an accounting period.

Variable Costing

A costing method where only variable production costs are assigned to inventory and fixed overhead expenses are treated as period costs.