What Is a Bond Indenture

question 71

Multiple Choice

What is a bond indenture?

• A)Guarantee of the price to the borrower.
• B)Contract that outlines the terms of the borrowing agreement.
• C)Promise from the borrower to restrict certain activities.
• D)Feature that permits the borrower to redeem before maturity.

---

Definitions:

Product Costs

These are costs that are directly associated with the creation of a product, including direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses incurred by a business that are not directly tied to the production process and are charged to the period in which they occur.

Variable Cost

Expenditures that are directly correlated with the volume of production or output level.

Manufacturing Overhead

All manufacturing costs that are not direct materials or direct labor, including expenses related to running the factory.