-In the Balance Sheet Above, the Entries Are in Millions

question 608

Multiple Choice

-In the balance sheet above, the entries are in millions of dollars for the FBN Bank. After FBN Bank loans the maximum amount it can, the loans have been spent, and the proceeds have been deposited in other banks, FBN Bank has excess reserves of

• A) $100 million.
• B) $200 million.
• C) $300 million.
• D) $0.

---

Definitions:

Resource Consumption

The amount of resources, such as materials, energy, or time, used in the production of goods or services.

Activity Rates

The charges or costs applied to specific activities or cost drivers in activity-based costing.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their activity levels.

Overhead Cost

Expenses that are not directly attributed to creating a product or service but are necessary for running the business, such as rent, utilities, and office supplies.